Time Watch Investments continues to trim its store network to address changing shopper behaviour in Mainland China.
The company has reported a decrease in sales of 8.1 per cent, to about HK$1.368 billion for the six months to December 31, largely due to a 10.5 per cent drop in revenue at its core Tian Wang Watch business, the group’s main source of revenue.
Sales at its smaller Balco Watch business, which accounts for just 3 per cent of total revenues slumped 35 per cent to $41.3 million.
Time Watch Investments retail network decreased to 2999 points of sales as at the end of December, a net decrease of 57 outlets over six months.
In a stock exchange filing, the company said the development of shopping malls and the increasing popularity of online shopping platforms had made Mainland China’s sales channels more diversified. As a result, the company reduced the number of sales counters located in department stores and increased the number in shopping malls.
In the year ahead, the company plans to open new stores in tier 2, 3 and 4 cities across the mainland.
“However, the focus will be more on those shopping malls targeting younger generation instead of traditional department stores,” the company said. “At the same time, the group will also closely monitor and assess the performance of all existing points of sale on a regular basis and optimise [our] distribution network in order to achieve the best market coverage and profitability.”
The company achieved a profit attributable to shareholders of $120.4 million, down 17.6 per cent on the same period last year.