Parkson Retail Asia continues drowning
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Struggling department store operator Parkson Retail Asia has hinted it may close further stores as it posted yet another loss. For the first quarter of the new trading year, the Singapore headquartered company lost S$11.1 million, a slight improvement on the $12.9 million of a year ago.
Last full trading year, the company lost $40.1 million for the full year.
In a statement, the company said it would will continue to prioritise on enhancing product offerings “as well as on optimising both our operational efficiency and network of stores,” suggesting further exits, most likely in Vietnam where it has just five stores remaining from a peak of 10 and continues to lose money.
Parkson credited the reduced loss on an improved performance of the Malaysian and Indonesian store networks, together with the effect of the closure of seven loss-making stores last financial year.
Group sales rose 1.7 per cent to $92.6 million.
On Friday the company announced the immediate resignation of its CFO Chia Cang Yang, with immediate effect. CEO Michael Remsen will oversee financial matters until a replacement is recruited.
Questions & Answers
Q.Which specific market is Parkson Retail Asia most likely to exit further, according to the article?
Which specific market is Parkson Retail Asia most likely to exit further, according to the article?
The company is most likely to exit further stores in Vietnam. It has already reduced its presence there from a peak of 10 stores to just five, and that market continues to be unprofitable for Parkson.
Q.What led to the reduced loss for Parkson Retail Asia in the first quarter compared to the previous year?
What led to the reduced loss for Parkson Retail Asia in the first quarter compared to the previous year?
The reduced loss was credited to an improved performance from the Malaysian and Indonesian store networks. Additionally, the closure of seven loss-making stores during the last financial year contributed to this positive change.
Q.Who is currently overseeing financial matters for Parkson Retail Asia following the CFO's resignation?
Who is currently overseeing financial matters for Parkson Retail Asia following the CFO's resignation?
CEO Michael Remsen is currently overseeing all financial matters for the company. He will continue in this role until a replacement Chief Financial Officer can be recruited and appointed.
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