The Winter Of Hongkong's Retail Industry Seems To Be Going On For Some Time.

Hongkong jewellery retailer Zhou Dafu and cosmetics retailer Sasa's semi annual report showed that as of the end of September this year, Zhou Dafu's half year net profit fell by 42.2% to HK $1 billion 557 million compared with the same period last year, while Sasa's half year net profit fell 55% to HK $153 million.

Zhou Dafu and Sasa both predicted that the third quarter performance will continue to be weak, and Maejing Naomi will obviously improve.

With the decline of free travel in the mainland and the impact of the "one Monday trip" policy, the retail industry in Hongkong continues to decline. One of the most obvious characteristics is the closing of stores.

Zhou Dafu chairman Zheng Jiachun said that in the first half of the year, Hongkong has closed three branches. In the second half of this year, 7-8 branches have expired, hoping to get more than 30% of the rent reduction rate. Some branches will directly consider closing stores.

Zhou Dafu, finance director Zheng Bingxi, said the long term Jewelry elimination The outlook for fees is optimistic, but the market is unlikely to recover significantly in the short term, and rents are still pressure on profitability.

The decrease of mainland tourists is partly due to policy implications, and on the other hand, the deterioration of the local environment in Hongkong. Sasa said that the occupation actions and anti water cargo events in Hongkong destroyed the image of Hongkong, reduced the tourists' willingness to visit Hong Kong, and Hongkong's tourism industry was losing competitiveness gradually.

Zheng Jiachun said, "hope." Hong Kong The government strengthens the regulation of forced shopping, reinventing the image of Hongkong's tourism industry and attracting tourists to visit Hong Kong; Guo Shaoming said that the government can enhance tourism promotion and enhance its image and competitiveness.

Talking about future development, Zheng Jia Chun It is considered that the network management in retail outlets will be more conservative than before, including the integration of inferior retail outlets and slowing down the pace of expansion of retail outlets.

Gao Songyan, a senior analyst at CLSA's retail industry, said Zhou Dafu had at least 1 to 2 years to integrate into the current focus of the branch. The number of branches reduced to 10% will affect the turnover, but it may help to make profits.

Zhou Dafu expects to close up to 10 stores throughout the year, accounting for about 11% of Hong Kong and Macao branches.

In fact, although Zhou Dafu opened 144 new retail outlets in the first half of this year (mainly in the three tier cities in the mainland), the number of retail outlets opened was only 29, because 115 retail outlets were closed during the same period, mainly by the closure or reorganization of the mainland department stores. At present, Zhou Dafu owns 2286 retail outlets.

The new shop strategy change is also Sasa, 2016 in the first half of fiscal year, it closed three stores in Hongkong. Sasa chairman Guo Shaoming said that it would speed up the adjustment of the location of shops and open new shops in residential areas to reduce the impact of sales decline in tourist areas. Guo Shaoming also said that the number and average amount of mainland tourists are down.

Business slump directly affects the income of employees of both companies. Although neither Sasa nor Zhou Dafu had a layoff plan, Guo Shaoming said that the company's revenue declined by an average of 15%-20%. Zheng Jiachun also said that the company's performance is good, the staff bonus is many, the performance difference is inevitably reduced.