Convenience Retail Asia posts strong H1 results

Date : 16 August 2019

Hong Kong-based Convenience Retail Asia (CRA) has posted a solid set of results for the first half ending 30 June, with Group revenue increasing by 5.0% YoY to HKD2,703m (US$344.7m).

Circle K’s comparable store sales increase 4.4% again

Circle K's comparable store sales increased 4.4% YoY – matching what it achieved this time last year. This contributed to total sales of HKD2,185m (US$278.6m) versus HKD2,061m (US$262.8m) in the first six months of 2019.

CRA ended the first half with 339 Circle K stores in Hong Kong, seven net new stores compared to the same period last year.

Growing engagement in O2O CRM programmes

At the end of the first half, the Group’s O2O CRM programmes, Circle K’s “OK Stamp It” and Saint Honore’s “Cake Easy” had memberships of 1.4m and 0.6m respectively.

“OK Stamp It” continued to drive sales performance, serving as a key platform for virtually all of Circle K’s sales and marketing efforts. Members can receive exclusive promotional deals and loyalty offers via a mobile app. This can be fulfilled at a store location of their choice.

Source: Convenience Retail Asia

Saint Honore Cake Shop network consolidating

As at 30 June 2019, the Group was operating 99 Saint Honore stores in Hong Kong and Macau, four fewer than the same period last year. The total network in Guangzhou amounted to 28 locations. Turnover for the business slightly decreased 2.7% to HKD508m (US$64.7m), following a decrease in total number of stores. This was offset slightly by a small increase in comparable store sales in Hong Kong and Macau.

H2 outlook: strong foundations should help offset challenging trading conditions

Hong Kong’s overall retail market is expected to remain subdued in the short to medium term. The retailer believes daily necessity segments will be less affected, but festive products and celebration cakes would have greater adverse impact.  The Group is confident, however, that its digital-savvy O2O business model will help future-proof growth.