Hong Kong-based retailer Giordano has closed 163 stores in mainland China in the first quarter of the year as demand for fashion apparel continues to weaken there.

Overall sales during the period increased by six per cent, however, sales in the mainland China declined five per cent.

“Mainland China markets remained weak during the Chinese New Year period. Along with our franchise partners we continue to reshape our footprint in mainland China, closing unprofitable stores and focusing on enhancing the quality of our operations where we open stores,” said chairman and CEO Lau Kwok Kuen.

He said the mainland remains a key market for the company and there are plans to introduce new store formats this year, particularly aimed at women.

General weakness in Taiwan’s economy also hurt Giordano’s sales in the market, which slid 15 per cent.

The sales declines in the mainland China and Taiwan were offset by sales increases in Hong Kong and other Asia Pacific markets, which rose four per cent and 12 per cent, respectively.

Giordano plans to open new stores in the markets where it saw sales rises.