Giordano witnesses a drop of 11 per cent in sales in the first 6 months of 2019!
Warm winter and the ongoing trade rift between US and China have been seen as major reasons for the slump in the international retailer’s sales.
The profit too dropped for the retailer during the said period by 36.6 per cent to touch US $ 20.5 million on a revenue of US $ 2.54 billion.
While Mainland China saw the sales fall by 22 per cent, it was a 11.9 per cent drop in Macau and Hong Kong. In Taiwan too, situation has not been good for the retailer, with 15.2 fall registered in the first 6 months.
Sluggish growth in economy and weak consumer sentiments led to disappointing sales for Giordano in Singapore (drop by 13 per cent) and Malaysia (drop by 8 per cent).
Indonesia, however, was a standout with a total same-store growth of 2.8 per cent and operating profit increase of 6 per cent.
To arrest the decline in sales in Mainland China, Giordano is intensifying its promotional activities. More on the same, Peter Lau, Chairman and CEO, Giordano said “a series of marketing programmes and smart promotional activities have been launched to ‘galvanise customer traffic’.
He also added that trade war was finally taking its toll on consumer sentiment for the retailer. “The economic situation is uncertain, with signs of economic slowdown across different parts of the globe,” said Peter.
