Tod’s rues anti-graft program

China mainland’s anti-corruption crusade has taken its toll on Italian luxury footwear brand Tod’s’ Hong Kong sales.

So, too, the changing demographic of mainland tourists, which rival fashion brands have also blamed for softening sales.

Tod’s says combined China sales fell 15 per cent noting customer traffic in its stores, and spending, experienced a “large decrease” in the quarter.

Greater China sales accounted for 20.1 per cent of the company’s total global turnover of euro 257.7 million, up one per cent on the same quarter in 2014. China sales were thus euro 53.9 million.

Sales in Italy accounted for 34.8 per cent of its total sales.

Tod’s also noted in its report that rents are “too high” in Hong Kong.

The group has 79 of its own shops in greater China, including 67 in the mainland, 11 in Hong Kong and one in Macau. It has another 25 franchised stores across the region.

This year the company expects to open new stores in Chongqing and Zhengzhou under its own ownership and another, franchised, outlet in Sanya.

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