Retailer 759 Store is slowing new store openings amid headwinds in Hong Kong’s consumer market.
The snacks and grocery chain operator has closed five stores in the past two months and may shutter a further four to five, the Hong Kong Economic Journal reports, citing Coils Lam, chairman of parent CEC International Holdings Ltd. (00759.HK).
Lam said despite the closures, the retailer will end up with a net increase under a plan to add 15 stores.
Rental costs even for smaller premises remain high, even though landlords have been willing to negotiate, Lam said.
He sees rents rising 5-10 percent on average.
Leases on 40 stores are up for renewal this year, he said.
The company has made a foray into e-commerce and diversified into cosmetics in its physical stores.
Its online platform generates an average of HK$1 milllion (US$129,000) in revenue each month, roughly on par with a medium-sized store.
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