23 July 2019

More tough times ahead for department stores, paper says

Stiff competition points to a negative outlook for China’s department stores next year despite expectations of a slight uptick in sales growth, China Daily reported Tuesday, citing Fitch Ratings. Weaker-than-expected revenue growth compounded by higher operating expenses hurt the earnings of most operators and pushed back deleveraging, the report said. “In general, operators with less-mature store networks, strong regional market positions and bigger exposure to lower-tier cities will likely fare better over the next 12 to 18 months,” Fitch analyst Michelle Leong was quoted as saying.

– Contact HKEJ at [email protected]



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