Date
25 May 2017
Bossini is negotiating with landlords to reduce rents as it pushes productivity in its shops to lower expenses. Photo: HKEJ
Bossini is negotiating with landlords to reduce rents as it pushes productivity in its shops to lower expenses. Photo: HKEJ

Bossini seeks rent cuts amid slowing sales

Bossini International Holdings Ltd. (00592.HK) is considering measures to ease pressure from rental expenses in Hong Kong and Macau amid lackluster sales, the Hong Kong Economic Journal reported on Thursday.

The apparel company said per square foot sales in the two cities fell 3 percent to HK$8,500 in the fiscal year to June, while same store sales were roughly the same as last year’s, compared with a 12 percent growth in the same period last year.

Same store sales in tourist districts such as Mong Kok, Causeway Bay and Tsim Sha Tsui dropped, offsetting growth in sales in residential districts.

The company is negotiating with landlords to reduce rents as it pushes productivity in its shops to lower expenses, chief executive Edmund Mak Tak-cheong said.

It is also planning to expand in overseas markets and introduce the operating mode in Hong Kong to Taiwan and Singapore to balance its business portfolio, Mak added.

Combined sales edged up 1 percent to HK$2.52 billion in the fiscal year to June, of which 69 percent came from Hong Kong and Macau.

[Chinese version中文版]

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