The company is looking to close 15 to 20 stores in Hong Kong by the end of the March next year whilst adding 30 stores in the mainland.
They are making the move to close some stores, particularly locations in tourist areas, to cut down on rental costs.
The group stated that the leases of 38 of their Hong Kong shops expired this year. Last year, the renewal rent in tourist areas was reduced by about 70 per cent and in non-tourist areas by about 26 per cent. So far this year, the rent renewal in tourist areas was reduced by 65 per cent and in non-tourist areas by about 30 per cent.
As of the end of March, Hong Kong and Macau stores were reduced from 112 stores to 100 stores, Malaysian stores were reduced from 79 to 75, and mainland stores increased from 44 to 57. Moving forward the group will turn their attention to its online business.
