HK based CEC International, 759 Store’s parent company, announced its half year revenue ending October 2015 rose 10.6% to HK$1,26bn, with gross profit up 17.6% year-on-year.
Stunning growth amid unfavourable market condition
The robust growth is mainly driven by the strong performance of 759 Store that accounts for over 90% of the group’s business. This is particularly impressive considering that retail sales in HK have been falling every month since March 2015 and the whole sector is hit by the economic slowdown in mainland China.
Three keys to success
759 Store, established in 2010, sells imported snacks, food, beverages as well as other household products. Apart from offering quality value products to meet customers’ needs, we have identified three key elements that drive 759 Store’s successful half year performance:
- Sticking to the “low margin, high turnover” policy: the company believes that pricing all products with a fixed margin is the critical reason why it’s successfully standing firm in the market.
- Expanding with caution: 759 Store’s new site locations are carefully selected based on consumer data and it looks to operate more efficiently by seeking new stores with larger space. Meanwhile, concerned about expected high transportation cost, the company maintains a measured pace in the development of its online presence.
- Optimising logistic system: the Group adopts a flexible logistic system, through which 759 Store is able to introduce a wider variety of products more efficiently.