Convenience Retail Asia sales, profit rise despite Hong Kong unrest

Circle K Hong Kong parent Convenience Retail Asia has recorded a 5.9 percent increase in sales last year to HK$5.632 billion (US$724.7 million), despite the onset of social unrest disrupting its core Hong Kong retail market.

Net profit for the year rose 13.3 percent to HK$208 million on the back of higher sales, operational efficiencies, and reduced production costs resulting from the depreciating renminbi.

Chairman Victor Fung said that if there was a silver lining to the second half-year “it was how the group responded to these challenges”.

Convenience Retail Asia ended the year with 383 Circle K stores in Hong Kong one fewer than a year earlier, 99 Saint Honore bakery stores and nine Zoff eyewear stores. A 10th Zoff store has opened this year at Lee Theatre Plaza.

Turnover for the convenience store business increased 7.5 percent to HK$4.524 billion with comparable-store sales growing 6.1 percent against the same period in 2018. Turnover for the bakery business decreased by 2.5 percent to HK$1.092 million due to reduced sales of festive products. And turnover for developing business increased 36 percent to HK$105 million due to the expansion of the Zoff store network.