Department store chain Wing On International maintained its sales volume in the first half of this year, but sacrificed profit in doing so.
Wing On operates four department stores and an eCommerce portal. Its flagship store is in Sheung Wan, the others in Nathan Rd, Discovery Bay and Tsim Sha Tsui.  
In the six months to June 30, the group’s department store sales decreased slightly by 0.5 per cent to HK$748.0 million, while its operating profit decreased by 12.6 per cent to HK$97.7 million.
It said the retail business continued to operate under difficult conditions affected by a noticeable decline in consumer spending and reduced tourist traffic.
The group closed down its Taikoo Shing store on August 3 as the landlord was unwilling to renew the lease.
“The group is pleased to note that its Taikoo Shing store received positive commendations and support from its customers during the store’s final trading days. Almost all of the staff of the Taikoo Shing Store were willing to continue their service and had been re-deployed to the Group’s other stores and operations.”
Group turnover from the broader business reached HK$952.9 million, a decrease of two per cent.
Profit attributable to shareholders for the first half of 2015 was HK$499.1 million, an increase of 30.6 per cent due primarily to the increase in net valuation gain on investment properties as compared to the same period last year.
Looking forwards, the group says in light of the prevailing weak retailing environment, the group expects the current declining trend in retail sales will continue in the second half of 2015. “Nevertheless, our department stores management will continue to assess and adjust the merchandise mix and concession counter selections as well as organise more marketing campaigns to boost our business.”