Hong Kong grocery chain 759 Store freezes investments, reviews lease deals after losses
- In the first five months of the year, retail sales in Hong Kong dropped 6.1 per cent year on year to HK$161.5 billion
CEC International Holdings’ revenue in the financial year ending April 30 fell 13 per cent to HK$1.47 billion, from a year ago, according to its filing with the Hong Kong stock exchange on Wednesday night. In 2023, the company recorded a net income of HK$49.56 million.
“The group will freeze all large-scale investment plans and curtail all non-essential expenditures to maximise the effect of cost-saving,” the filing said.
“On top of that, the management is meticulously examining the performance data for each 759 Store shop. Decisions regarding tenancy renewals will be based on actual shop performance. Concurrently, discussions are underway with landlords to explore potential rental adjustments that could create win-win opportunities for both parties.”
The company closed one store during the period, adding that “the prevalence of vacant shop spaces across various districts in Hong Kong presents both a challenge and an opportunity”.
CEC said it is actively identifying potential sites for new stores, with criteria focused on rental costs, foot traffic, and appropriate shop size to meet its requirements.
