Convenience Retail Asia reports modest increase in turnover

Circle K Hong Kong operator Convenience Retail Asia has reported a modest increase in turnover last year as its convenience and bakery store networks show signs of maturity.

And as reported earlier, the company is crediting its fashionable eyewear brand Zoff, a Japanese retailer for which it is the Hong Kong licensee, as a driver of both growth and profits.

Group turnover rose by 4.4 per cent to HK$5.32 billion mainly due to 2.9 per cent growth in comparable-store sales for the convenience store business and sales at Zoff. Core operating profit grew 17.5 per cent and net profit by 21.9 per cent.

The Circle K division opened nine store last year and closed four, to end the year with 337. The company also operates 61 franchised Circle K Stores in Guangzhou, 32 in Macau and 13 in Zhuhai.

The Saint Honore Cake Shop business opened four new stores in Hong Kong and Macau and closed six, ending the year with 100 in the territories along with 31 in Guangzhou.

A highlight for Convenience Retail Asia last year was the growth of its online-to-offline (O2O) customer relationship management (CRM) programs, which continued to underpin its marketing strategy. Membership of Circle K’s “OK Stamp It” and Saint Honore’s “Cake Easy” programs reached 1.2 million and 500,000, respectively.

“With the rise of the internet+ era, the group’s pioneering O2O business model has become its lifeblood,” said chairman Victor Fung.  

“Over the past two years, our innovative “OK Stamp It” and “Cake Easy” O2O CRM programs have proven incredibly effective at recruiting members, creating loyal customers, and promoting the quality offerings that can be found at Circle K and Saint Honore stores – all via platforms that are “EFS”, or easy, fast and simple.

They will continue to be the foundation of our sales and marketing efforts and create valuable synergies with our new businesses.”

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