Parkson Retail sinks into 1Q loss on declining same store sales growth

SINGAPORE (Nov 10): Parkson Retail sunk into a loss of $5.2 million in 1Q from earnings of $49.5 million a year ago. This came on the back of negative same store sales growth across all regions and losses incurred from new stores and businesses.

Revenue for the quarter rose 0.7% to $93.3 million on improvement to concessionaire sales margin by 30bps.

However, same store sales growth was negative across Malaysia (-6.6%), Vietnam (-10.3%), Indonesia (-13.1%) and Myanmar (-28.2%). Among other factors, sales in Malaysia and Indonesia were affected by the shift in the Hari Raya Calendar. Sales in Vietnam declined on the difficult climate for discretionary retail environment amid a crowded retail scene. Sales in Myanmar decline was due to the impending closure with the landlord serving notice to vacate the property by 3QFY17 for redevelopment. However a new store has been secured and scheduled to open later in the financial year.

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