Parkson Retail Asia books lower net profit amid weak consumer spending
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Parkson Retail Asia booked a lower net profit last year with two fewer stores and weak consumer spending.
The department store chain’s net profit fell 8.5 percent to S$26.3 million (US$19.6 million), while revenue fell 4 percent to S$221.6 million (US 165 million).
The company ended the year with 37 stores, down from 39 in the prior year.
Its gross sales proceeds from continuing operations slid 9.1 percent to S$535.7 million (US$398.8 million) as total merchandise sales and consultancy/management service fees fell 9.2 percent and 0.7 percent, respectively.
Meanwhile, rental income grew 5.5 percent to S$1.6 million (US$1.2 million), and food and beverage increased 6.2 percent to S$2.2 million (US$1.6 million).
Questions & Answers
Q.What was the main reason for the decline in Parkson Retail Asia's net profit last year?
What was the main reason for the decline in Parkson Retail Asia's net profit last year?
The department store chain's net profit fell due to weak consumer spending and operating with two fewer stores. This contributed to an 8.5 percent decrease in profit, down to S$26.3 million.
Q.How many stores did Parkson Retail Asia operate at the end of last year?
How many stores did Parkson Retail Asia operate at the end of last year?
Parkson Retail Asia concluded the year with 37 stores in operation. This figure represents a reduction from the 39 stores it had in the preceding year.
Q.Did all revenue streams decline for Parkson Retail Asia last year?
Did all revenue streams decline for Parkson Retail Asia last year?
No, not all revenue streams decreased. While total merchandise sales and consultancy/management service fees fell, rental income actually grew by 5.5 percent, and food and beverage income increased by 6.2 percent.
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