Don Don Donki not fazed by tight labour, pricey rentals here

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Two more outlets will follow in Jurong East, one by December and another next January.

Mr Yasuda says Don Don Donki appeals to employees - even attracting those from other retail businesses - because they are treated as managers instead of mere workers, and are given autonomy.STIFF labour conditions and pricey property rents may be the bane of retailers in Singapore, but Don Don Donki is not letting such troubles get in the way of its rapid expansion.

Being able to draw crowds to quieter parts of malls, landlords are happy to offer lower rents for Donki to set up shop."We can't say how cheap our rents are, but we receive quite reasonable price offers," Mr Yasuda told The Business Times in an interview at his office at Marina Bay Financial Centre.The first Donki store in Singapore was opened at Orchard Central's basement after Far East Organisation approached them with a good rental price.

Mr Yasuda, an avid diver, said the company appeals to employees - even attracting those from other retail businesses - because they are treated as managers instead of mere workers, and are given autonomy. This comes as the retailer looks to bring its fascinating range of wares to the suburbs, where it sees huge opportunity. It means Donki may also set up shop at MRT stations in residential areas, he said.

"Mega Donki stores sell more than just Japanese goods whereas we're specialising in Japanese food and products in Singapore," Mr Yasuda explained."If we open that in Singapore, we will be competing with local retailers and won't be welcome." He wants to see 200 stores overseas in the next five years, up from 42 stores now. In comparison, Pan Pacific operates 656 stores in Japan as of end-January.

Source: News Formal (newsformal.com)

 

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