eGG rollout to be ramped up
eGG, the fast fashion optical boutique owned by Stelux Holdings, posted a 178.8 per cent increase in Mainland China sales last year, prompting a fast tracking of store roll-out plans.
Stelux says after such a positive performance from the chain in the year to March it will open more than 30 new stores in the coming year.
And it will expand the brand into Singapore, Malaysia and Thailand within the next year.
Even in the lacklustre Hong Kong-Macau retail market, the chain excelled: With the store network expanded from 10 to 15, turnover increased 52.4 per cent to $71.4 million. Same store growth was 40 per cent.
As such, eGG Hong Kong came very close to break even, incurring a small loss of $700,000, compared with a loss of $7.3 million the previous year.
Stelux believes the concept found favour with shoppers because it captured consumer preference for trendy and fancy optical eye wear.
In the Mainland, driven by new store openings, eGG’s turnover rose to $42 million and same store sales rose 27 per cent.
Despite the continual rollout of new stores – there were 24 operating as at the end of June – , the Mainland China loss narrowed slightly to HK$15.3 million, from $16 million, but store level profit was achieved in April and May 2015.
Stelux has eGG stores in Hangzhou, Suzhou, Wuxi (Eastern China); Chongqing, Sichuan (Southwestern China); and Beijing, Tianjin, Shenyang, Dalian (Northern China).
“We expect to see a good performance from eGG Hong Kong and eGG Mainland China in the coming fiscal year, as encouraging momentum has been carried through into the first quarter of 2016,” the company said.