Loss-making retailer Wing On International is likely to undergo another difficult year, being challenged by falling sales in the territory and uncertainties over existing operations across the border.
Managing director Mark Kwok Chi-yat said the company, one of the Hong Kong's oldest retailers, suffered under a 'stagnant and lacklustre' retail sector last year.
'We do not expect any significant improvement in the general retail scene in the near term. And most likely, the department store operations in general may shrink in the second half,' he said after the company's annual general meeting yesterday.
Mr Kwok said two stores would be shut this year, leaving 11 and causing sales to fall 'temporarily'.
Wing On earned $286 million net profit after charging a $101 million loss to its retail arm last year.
Mr Kwok said the company had as yet no plans to open any new stores.