Source: Bloomberg
Hong Kong people are keen to go to the mainland of China to drink, eat and shop, and make the corporate groups controlled by billionaires to be worried.
Changhe -a huge commercial empire affiliated to the giant Li Ka -shing, on Thursday (March 21), the company's profit has reached the largest decline since 2015.As the retail business of Hong Kong is facing the pressure of residents, the company is re -considering which consumer products to provide.Li Qiming, the general managing director of the Changhe Deputy Director, said at a press conference that the group is adding health -related products in stores in densely tourist areas to attract mainland shoppers.
He said that the company will also purchase more products around the world, including the Mainland, including the world.Changhe's retail business includes supermarkets, as well as Watsons -the world's largest international health care and beauty retailers.
Li Qiming said that many Hong Kong residents' "north" and near cities inevitably affect their consumption emotions in Hong Kong."Our group's retail business in Hong Kong also felt the pressure." "
Entertainment and catering with many varieties and low prices have attracted the number of residents who have created records to surge in the Mainland, including Changhe, Iehey Holdings and Henderson Real Estate.Stores and restaurants are impacted.In addition, the protests in 2019 and the strict epidemic prevention and control of several years have led to a large number of foreign people and local professionals.
The basic net profit announced by Henderson Thursday is not as good as analysts' predictions that the profit of its department stores and supermarkets has decreased by 42%year -on -year.
The company stated in a statement that the business faced the problem of decline in food and daily necessities after the epidemic, as well as the increase in outbound travel and cross -border shopping.
The basic profits of the grocery department of Jackie have been reduced by half last year; DFI Retail Group Holdings LTD., which is under the DFI RETAIL Group Holdings LTD., operates Hong Kong's largest chain supermarket, Huikang, health care and beauty products retailer Wan Ning."The frequency of Hong Kong residents to the Mainland has continued to rise, affecting shopping behavior, especially on weekends," DFI said in the earlier earnings of this month.
Consumers flood in the Mainland, which also affected the restaurant business.Operating Pizza Hut and KFC in Hong Kong fell into losses in 2023.The company said that the two fast -food chain stores recorded losses last year.
DFI told analysts at the press conference that the company plans to provide more competitive health products and other products, and attract customers back.
Because competition from nearby cities such as Shenzhen has intensified, even the state -owned enterprise China Resources Holdings has closed half of Hong Kong chain supermarket U -buy SELECT stores.Hong Kong's largest food and fast consumer goods distributor Dachangxing Group announced earlier this month that 28 retail stores were closed.
