Despite the weak market condition, Hong Kong-based Convenience Retail Asia (CRA) has seen solid growth in FY2015, with its turnover increasing by 4.3% to HKD4.7bn (US$609.5m).
Strong like-for-like sales growth in a sluggish market
CRA attributes its positive performance to the solid performance in like-for-like store sales across its convenience store and bakery businesses. It operates 449 Circle K c-stores in Hong Kong, with an additional 121 franchised stores across Mainland China and Macau.
The company is expecting another challenging year, considering the difficult retail market conditions in both Hong Kong and Mainland China, coupled by the fierce competition and weak consumer sentiment.
Selling Guangzhou operations to improve profitability
In August 2015, CRA sold its loss-making Circle K convenience store business in Guangzhou, a city in Mainland China, and it also ended the pilot programme that involved operating 10 petrol stations and Easy Joy convenience stores in Guangzhou.
The decision to divest has resulted in a 31.5% increase in net profit to HKD139m (US$17.9m) and it will help the company focus on revenue streams that have a more promising outlook for growth.
Find out the latest news on Asia retail
Please follow us on twitter @IGDAsia