Zhou Dafu'S New Year'S Same Store Sales Fell 29%, Retail Is Full Of Challenges.

The continued decline and unpleasant incidents of mainland visitors affected Hongkong's local retail industry. In February 17th, Zhou Dafu announced that sales growth in the same store during the Chinese new year fell 28%, while the same store sales and retail sales decreased by 29%.

According to the Hongkong Ta Kung Pao reported that after the shareholders meeting, President Zhou Dafu's Zheng Jiachun said that the group will evaluate every branch this year, and it is expected that some sub shops will be cut down, and the group will not reduce wages.

In February 17th, Chow Tai Fu announced that sales growth in the same store fell by 28% during the Chinese New Year (January 25th to February 14th), while the same store sales and retail sales decreased by 29%.

Data show that during the same period, the same store sales volume in Hong Kong and Macao decreased by 22% and 29% respectively, while the retail value decreased by 23%.

As for the mainland market, the same store sales and same store sales decreased by 31% and 29% respectively, and the retail value decreased by 30%.

The poor performance is due to the decrease in the number of visitors to the mainland and the continued weakness in the retail market in both places.

The mainland retail value and same store sales growth fell by 30% and 31%, mainly due to the increase in the number of outbound tourists, leading to holiday consumption outflows and the weakness of luxury consumption due to the economic slowdown and recent stock market volatility.

Management expects that the retail environment in the fourth quarter will continue to be challenging and sales performance will be weaker than in the third quarter.

Zhou Dafu's weak sales performance was once again weakened by UBS. In February 17th, UBS released a report that the target price was lowered from 4.90 yuan to 3.50 yuan after the Zhou Dafu rating was sold.

UBS cut Zhou Dafu's 2017 and 2018 revenue forecasts by 5% and 9%, respectively, to reflect a persistent downward trend in sales over the next two years, and earnings forecasts were also cut by 20% and 25% respectively.

Zhou Dafu's income growth is expected to be -1% and 4% respectively in the 2017-2018 years, and the profit growth will be -9% and 5% annually.

According to Hongkong Ta Kung Pao,

After that, Zheng Jiachun, chairman of Zhou Dafu, said that the group will assess every branch this year, and it is expected that some sub shops will be cut down, and the manpower will be reduced according to the situation.

Zheng Jiachun also hoped that some incidents should not continue to affect the social environment, safety, tranquillity and the living conditions of the citizens.

Looking forward to this year, Zheng Jiachun said that the group would not reduce wages, but I believe that Zhou Dafu's bonus and bonus will be linked to profits. This year, "earn less", bonus and bonus will also be less.

But the new world group will continue to increase employee salaries in line with market trends.

In addition, Zhou Dafu and

The first phase of Qianhai shopping centre, which developed joint investment, was opened at the end of last year. Zheng Jiachun said that the results were good. It is expected that after the second phase of the end of April, the area will be larger enough to attract more people to shop.

The report considers that

The same store sales trend from 9 to December last year (23% in Macao and 6% in the mainland) will continue to reach 1-3 this year in Hongkong.

A recent survey by the bank found that Zhou Dafu opened all the lunar new year this year, which is different from last year. Even so, there is only a slight increase in the flow of people in the branch.

The bank believes that the diversion of tourism and retail sales in Hongkong will continue to lead to a decline in sales in the region. The slowdown in sales in the mainland will also mask the efforts of cost control.

Managing deleveraging will increase earnings pressure.