City Chain sales down as store network shrinks
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City Chain sales plunged 20 percent across Greater China in the three months to June.
Hong Kong-headquartered parent Stelux International – which spun off its eyewear business last year – said the watch-retailing chain’s poor performance was due to a 14.8-per-cent contraction of its store network and “softened consumer demand”.
Group-wide turnover fell 18.8 percent to HK$235.3 million for the June quarter.
City Chain sales in Greater China reached $167.1 million in the quarter, down 20.1 percent, with the store network down from 135 at the end of June last year to just 102.
Sales in Southeast Asia fell 15.3 percent to $68.2 million with the store network down 36 over a year to 208.
Questions & Answers
Q.What is the primary reason given for City Chain's decline in sales across Greater China?
What is the primary reason given for City Chain's decline in sales across Greater China?
The company attributes the poor performance to a 14.8 percent contraction of its store network within the region. Also, softened consumer demand is cited as a contributing factor for the sales plunge.
Q.How many City Chain stores closed in Greater China over the past year?
How many City Chain stores closed in Greater China over the past year?
The store network in Greater China reduced from 135 at the end of June last year to 102 stores by the end of June this year. This represents a reduction of 33 stores in the region.
Q.What was the total group-wide turnover for Stelux International during the June quarter?
What was the total group-wide turnover for Stelux International during the June quarter?
Group-wide turnover for Stelux International fell 18.8 percent to HK$235.3 million for the June quarter. This figure encompasses the performance of all its operations.
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