There is no improvement in the retail industry in Hong Kong, and retailers have gradually adjusted their store networks
Sasa (00178) announced yesterday that Hong Kong and Macau same-store sales fell 34.7% from October to December last year, and it plans to close a maximum of 25% of stores in the next year and a half.
Some retail analysts have pointed out that there are no signs of social issues being resolved, and retailers that rely on tourist businesses may find it difficult to support their business in the future and will seek transformation. However, due to the intensified competition of international brands, coupled with the narrowing of parallel and licensed prices, It is estimated that the road to transformation will be challenging.
The HKTB also announced that the initial number of visitors to Hong Kong in 2019 recorded 55.9 million visits to Hong Kong throughout the year, a year-on-year decrease of 14%; the number of mainland visitors dropped sharply by 40% in the second half of the year.
Mainland tourists drop sharply
Sa Sa ended the third quarter of last year, the turnover fell by 27.3% year-on-year to 1.584 billion yuan. Hong Kong and Macao market turnover fell 35.2%, the number of transactions fell by more than 30%, mainly due to the decline in the number of mainland visitors to Hong Kong, the number of transactions from mainland visitors fell sharply, coupled with the number of local visitors also fell more than 9%, dragging down Hong Kong sales in the quarter The amount fell 47.5% year-on-year.
Sa Sa said that given that the operating environment in Hong Kong has not slowed down significantly, due to the sales performance of the stores, the business situation in each district and the extent of rent reduction, it is tentatively planned to close about 20% to 25% of the stores in the next 18 months, most of which are located in Tourist area and closed 6 rooms in the third quarter.
As of the end of last year, Sa Sa had 115 stores in Hong Kong and Macau. According to its closing plan, it is equivalent to closing 23 to 29 stores. Securities firm Furui issued a research report stating that management plans to close about 25 Hong Kong branches.
Sasa went on to say that it will actively negotiate rents with the owners, with the primary goal of restoring the store’s profit contribution as soon as possible. Chairman and Chief Executive Officer Guo Shaoming said that he will continue to optimize product and inventory management. He is confident that the current inventory level can be reduced again this fiscal year, and that cash levels are still stable, which will accelerate the pace of opening retail stores in the Mainland and optimize e-commerce. How it works.
Youpin 360 scolds 30 million to expand the mainland
The Hong Kong Retail Association visited more than 170 companies at the end of last year, and 32% of them said they would reduce the number of stores by 10-20% in the next six months. In fact, Chow Tai Fook (01929) is expected to close no more than 15 stores before the end of the next fiscal year. Italian brand Prada (01913) intends to close a store in Causeway Bay by the middle of the year. CEC International (00759), a people ’s livelihood company, also refers to The decision to close the Asinwu branch, which has high rents, shows that the retail industry is closing.
In addition, Youpin 360 (02360), which has been listed for one year, was repeatedly damaged due to social events. It was announced yesterday to change the use of the net proceeds from the listing of funds, of which 30 million yuan was changed to external investment, expanding business in the Mainland and Macao. To counteract the risks associated with Hong Kong’s sluggish retail market and uncertain local economy.