NATIONAL: Surfwear giant Billabong has announced it will open its first airport store in Singapore this year - confirming its commitment to regional development in the face of a weakening American market.
The company has formed a strategic partnership with a subsidiary of Lagardère Services Asia Pacific (LSAP), a leading airport retail operator with over 100 concept stores throughout the region, to open a site at Singapore's Changi International Airport. It will measure at 92sqm and be located Changi Terminal 3.
The contract will reportedly run for three years with the store set to launch on May 1.
It is understood the LSAP subsidiary, Saresco Travellers, trounced competition from several other companies when it proposed the Billabong concept store to the Civil Aviation Authority of Singapore. This included Jay Gee Enterprises, which campaigned for the opening of a Levi's site.
Billabong confirmed sales remained strong in the greater Asian market in a trading update on December 4.
This was not the case for its American arm, with deteriorating conditions forcing the surfwear retailer to downgrade its full year guidance to a range of six to ten per cent earnings per share growth. This was down from the previously forecast 12 to 16 per cent growth provided at the company's annual general meeting in October.