Hong Kong grocery chain 759 Store freezes investments, reviews lease deals after losses

Name: SCMP
Telephone: +852-2680-8888

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

Reading Time:2 minutes

Why you can trust SCMP

A 759 Store at Richland Gardens in Kowloon Bay, Hong Kong. Photo: Facebook

Cheryl Arcibal

Published: 12:56pm, 25 Jul 2024

The operator of grocery chain 759 Store in Hong Kong is freezing major investment plans and reviewing tenancy agreements for its 165 outlets, after the company reversed into an annual net loss of HK$29.8 million (US$3.8 million) in the year to April 30, 2024, from a profit a year ago.

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.”