Message from the President

Far Eastern Department Stores President
Nancy Hsu

With the easing of the pandemic, people’s life has gradually returned to normal, and Taiwan’s department stores market has rebounded. In 2022 consolidated revenues were NT$394.6 billion, up 15.2% year over year, both revenues and growth rate marked new highs in the retailing history. Far Eastern Department Stores (FEDS) also reached new milestone, delivered again outstanding operating performance, and created a more outstanding and sustainable value for the enterprise. To continue to elevate sustainable competitiveness, FEDS will continue to maintain profit growth, and focus on ESG performance, through “EPS + ESG” to pave for the foundation of sustainable operations and establish a sustainable operation landmark for the retail industry.

Operating Performance Marking New Records

Far Eastern Department Store’s Chubei Shopping Mall held its soft opening on January 14, 2022, adding a stronghold to expand the retailing deployment of FEDS. The unique architectural design and exclusive merchandise of Chubei Shopping Mall have appealed to the public, attracting 30,000 visits on the first day of soft opening, its strong momentum was effectively translated into the Company’s operating growth. With the successful opening of Chubei Store and strong growths of each existing store, FEDS registered in 2022 annual revenues of NT$58.3 billion, and an operating profit of NT$2.43 billion, both reporting over 20% in growth, operating efficiency marked historical new high in the past 55 years, outstanding performances continued to create maximum value for the stakeholders.

Leader in Eco-Friendly Operations

Committed to environmental sustainability, each year FEDS periodically reviews its possible impact to the environment caused by its operation, studies the responsive measures, and stipulates the four directives of “Energy conservation, carbon reduction, green energy, and waste reduction,” adopts action plans to resolve impact on the environment. In 2022, the Company promoted 24 energies conservation projects, succeeded in reducing 833 tons of carbon emissions; started to establish 1,600 kilowatt of solar installation capacity, estimated to produce 1.14 million kWh of green energy; and strengthened sales space category management, recycled 1,315 tons of reusable resources to reduce waste production. Our efforts and excellent performance of transitioning into a low-carbon operation was recognized and ranked among the top 100 enterprises in the November 2022 issue of “Business Weekly,” FEDS as the only brick-and-mortar department store being listed.

Establish Diversified and Inclusive Workplace

FEDS has nearly 1,400 employees. We respect the differences in each employee and engage in management measures and educational trainings to promote gender equality, wage equality, stop discrimination, and healthy workplace, to build an equal, diversified, and inclusive workplace for our staff. Thus, enabling them to feel secure to work in a supportive environment, to bring positive and proactive attitude into their business activities, and deliver best service quality and work efficiency. In 2022, we have promoted the “Staff Health UP” programs for four consecutively years, sponsored 251 staff in “health up” campaigns including health seminars, on-site physician services, etc. with 6,578 attendees.

Commitment to Philanthropy

To achieve the objective of giving back to the society, FEDS turned its 12 branch stores throughout Taiwan’s 10 cities into local philanthropic platforms, connecting resources from consumers, vendors, local government, and non-profit institutions, to sponsor 783 CSR campaigns to aid the underprivileged, caring for women and children, and environmental protection, etc. We also encourage staff to engage in one-day volunteer services. In the past 4 years, staff volunteer services have accumulated to 142 events, 3,175 service hours. FEDS employees have been committed to corporate social responsibilities, connecting wonderful life with love. Business operation deals with all aspects of challenges. With more daunting and turbulent environment ahead of us, the enterprise will be built with more resilience, and cultivate new abilities to adapt. FEDS commits to sustainable operations. Aside from paying attention to the opinions of its stakeholders, strengthening the promotion and management of ESG, the Company also adjusts with flexibility through its operating strategies and directions, prepare in advance for problems that may arise in the future, turn hidden crisis into business opportunities for its sustainable developments, and elevate its sustainable value.