Metro Singapore retail sales decline
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Metro Holdings’ Singapore retail business posted a 7.6 per cent decline in sales during the first quarter of this year amidst “difficult trading conditions”.
Metro has three Metro-branded department stores in the city and another 10 department stores in Indonesia.
The company said the retail business as a whole posted a decline in profit due to lower Singapore sales. Its Indonesian stores achieved “marginal growth”, the company said in its results filing.
Overall, Metro Holdings, whose primary business is property development in China, Singapore, Indonesia and the UK, achieved a net post-tax profit of S$20.3 million (US$14.7 million) for the quarter, down nearly 20 per cent in the same period last year, when it earned $25 million. However, this was largely due to the absence of a significant $8.3 million gain on asset disposals in the comparable quarter.
CEO Lawrence Chiang Kok Sung said the group will remain “disciplined and focused” in its investment approach to seek out potential investment opportunities in the region to drive sustainable growth.
Questions & Answers
Q.Which part of Metro Holdings' retail business primarily experienced the sales decline?
Which part of Metro Holdings' retail business primarily experienced the sales decline?
Metro's Singapore retail business saw a 7.6 per cent decline in sales during the first quarter. This contributed to an overall decline in profit for the retail business as a whole.
Q.Did Metro's Indonesian stores also face a decline in sales?
Did Metro's Indonesian stores also face a decline in sales?
No, Metro's Indonesian stores did not experience a sales decline. The company reported that these stores achieved 'marginal growth' during the first quarter, despite the struggles in Singapore.
Q.What is Metro Holdings' primary business, apart from retail?
What is Metro Holdings' primary business, apart from retail?
Metro Holdings' primary business is property development. They operate in this sector across multiple countries, including China, Singapore, Indonesia, and the UK.
Q.What was the main reason for the overall net profit decrease for Metro Holdings this quarter?
What was the main reason for the overall net profit decrease for Metro Holdings this quarter?
The main reason for the nearly 20 per cent drop in net post-tax profit was the absence of a significant S$8.3 million gain from asset disposals, which had boosted profits in the same period last year.
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