Challenger Singapore shrugs off retail gloom

Listed IT chain Challenger Singapore plans to open new stores this year as sales increase despite the city’s retail malaise.

Challenger currently operates 45 stores in Singapore, a flagship megastore, 22 superstores and 22 small format stores. The company says it will continue to expand its retail footprint with three new stores planned for the second half of this year. Some stores which are not performing up to expectation will be downsized or closed when their current leases expire.

Challenger Technologies, Singapore’s largest retailer of IT products and services, has reported a three per cent increased in second quarter sales to $84.7 million.

It says sales were buoyed mainly by an increase in trade show activities as well as full-year operations for retail stores opened since the second half of 2014.

These were partially offset by loss of revenue that resulting from its exit from Malaysia in the first half of last year.

Net profit jumped 21 per cent to $3.5 million, boosted by reduced rental and operating expenses that resulted from the Malaysia exit.

CEO Loo Leong Thye said although the company had improved its net profit, the IT retail business in Singapore continues to be challenging due to weak consumer spending power.

“We also face higher operational costs and difficulty in hiring more staff to serve our customers to an expected level of satisfaction.”