Eslite boss reveals strategy to revive company revenue
The pandemic has forced changes to rental structures and neighborhood businesses, resulting in an overhaul of company revenue plans
By Crystal Hsu / Staff Reporter
Eslite Spectrum Corp (誠品生活), which runs the Eslite bookstore chain, department stores and leisure lifestyle services in Taiwan and overseas, aims to achieve 18.5 billion in sales NT$ to NT$19 billion (US$628.9 million to US$645.93 million) this year after extending losses in the first quarter, Chairman Mercy Wu (吳旻潔) said in an interview with the Chinese-language Commercial Times yesterday.
The Taipei-based group is struggling to return to profit after posting losses of NT$1.46 per share in the January-March period as the COVID-19 pandemic weighs on its popular bookstores and Eslite department stores.
Eslite Spectrum has sought to survive by adopting an online-offline merger (OMO) business model that allows offline retailers to leverage existing e-commerce platforms with better utilization of its business network and lower costs, said the newspaper citing Wu.
The company suffered losses per share of NT$4.82 last year for the first time since listing on the Taipei Stock Exchange over-the-counter. Wu attributed the poor results to the COVID-19 pandemic and capital expenditure to build an online sales network.
The chilling effect was most evident at Eslite branches in transportation hubs and popular places in northern Taiwan, she said.
Last year, the company launched a three-year transformation aimed at restoring annual revenue to the pre-pandemic level of NT$20 billion next year and increasing it to NT$30 billion thereafter.
Achieving the NT$30 billion target would mean the company’s sales channels expand and its focus on cultural tourism, community living and e-commerce pay off, Wu said in the statement. interview, adding that the effort should ultimately lead to improved revenue. qualified as successful.
Eslite Spectrum plans to open large flagship bookstores and small neighborhood outlets across Taiwan as well as overseas to increase its customer base and expand its business, Wu told the newspaper.
The pandemic is reshaping business districts around Taiwan, with smaller retailers forced out of the market as demand for food, drink and entertainment proves stronger than regular shopping, Eslite Spectrum said.
In addition, the business mix and rental structure of commercial properties have been forced to change, but consumer activity at the neighborhood level remains active, the company said.
The Eslite (誠品行旅) affiliate hotel at Songshan Culture and Creative Park (松山文創園區) in Taipei is currently courting domestic tourists before the government reopens Taiwan to foreign tourists, he said.
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