There are further signs that the Hong Kong retail slump has reached its worst, with two listed restaurateurs revealing expansion plans.
The CEO of tea-house operator Tsui Wah Holdings, Peter Pang Kwing-ho said during a results announcement that the local economy, as well as the retail sector, are beginning to bottom out.
Tsui Wah reported a turnaround back into profit of HK$42.2 million in the six months to September 30 – albeit down 48 per cent on the same period last year. Sales were down 2.2 per cent.
Kwing-ho attributed the slip to the global economic fluctuations, Hong Kong’s retail slump and slower growth on the mainland, but stressed the worst of the climate has passed and the company was now looking to expand again.
“We’ll open one more restaurant in Hong Kong in the second half of the year, and are carefully looking for the right places for new outlets. We believe there’s still plenty of room for improvement in the mainland market, and mainland business will continue to rise in future.”
The announcement followed another by Cafe de Coral Holdings yesterday which also reflected improved fortunes.
Cafe de Coral plans as many as 25 new restaurants in the second half of next year, creating 800 to 1000 jobs, expecting growth to return to the local market.
Around 43 million Mainland Chinese visitors to Hong Kong account for 35 per cent of the city’s retail sales and 75 per cent of total tourist numbers.