Hong Kong’s retail industry will continue to see gloomy sales in the second half of the year as mainland travelers choose other shopping destinations in Asia and Europe, said Dickson Poon, chairman of Dickson Concepts International Ltd. (00113.HK).
Dickson Concepts, a distributor of luxury fashion brands, saw a 7 percent decrease in revenue in April and May compared with the same period a year ago, the Hong Kong Economic Journal reported on Friday.
However, the company has no plans to close any its shops or shed staff for the time being, Poon said, adding that it will not engage in cut-throat competition to attract sales.
Other listed retailers, including Sa Sa International Holdings Ltd. (00178.HK), Chow Tai Fook Jewellery Group Ltd. (01929.HK) and Luk Fook Holdings International Ltd (00590.HK), also recorded 6.8 to 24 percent decline in same-store sales in Hong Kong and Macau in the four months ended June.
Meanwhile, mainland shoes retailer Daphne International Holdings Ltd. (00210.HK) issued profit warning after same-store sales dropped 17.7 percent in the second quarter from a year ago. It closed 167 stores during the period.
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