WHEN KATHRYN HALLAM TOOK over as managing director of Banyan Tree in mid-2000, one of her first tasks was to close two outlets of the upmarket furniture and interior store.
'It was so depressing. Taking over as MD and straight away I am losing two stores. It also sends ripples through the staff. But we kept everyone - I made that very clear. It was a question of consolidating. We needed the experienced staff but not those locations.'
Banyan Tree did away with its Times Square outlet - where high rents in a young fashion-oriented mall had not made for good business - and the one at Ocean Terminal, which had been losing appeal and was about to undergo renovation.
Today, Ms Hallam believes the downsizing was one of the best things the company could have done.
The other big move, which began in late 1999, was to open a corporate services division, a giant leap away from traditional retail. The company has built a new line of business working with property developers and agents to decorate serviced apartments and show flats, as well as offering furnishing packages to renters and buyers.
'This economic downturn that the whole of Hong Kong is suffering is not new to retail,' Ms Hallam said.
