Having read the report about ParknShop's new megastore opening in Tseung Kwan O (South China Morning Post, August 24), I am beginning to understand why there have been all the recent price rises in the supermarket chain's other outlets.
It would seem to have little to do with exchange rates after all. According to Iwan Evans, chief executive officer of the Retail Food Division of the A. S. Watson Group, which operates ParknShop, profitability in Hong Kong's supermarket industry is very low and the sector has been operating at a loss.
Could this be because the company continues to open new outlets such as the megastore in Metro City? How about the one in Shouson Hill which must be operating at a loss simply because I never see anyone in there?
Why continue to expand in a loss-making business?
F. M. de BURGH MOUND
Deep Water Bay
