Giordano puts brakes on sales slide in Taiwan, Singapore

Giordano International, which operates about 1,700 apparel shops in Asia, said the decline of its sales in Taiwan and Singapore slowed during the third quarter while sales in its two largest markets - the mainland and Hong Kong - kept their growth momentum.

The company said the July-September sales decline in Taiwan, which accounts for 17 per cent of the chain's retail revenue, was much less than the 17.6 per cent drop in the first half, which dragged down earnings.

Sales in Singapore, where Giordano derives 10 per cent of its revenue, also improved in the third quarter. Sales fell 7.3 per cent in the first half.

Group spokesman William Yue, while declining to provide figures for the third quarter, said that the improved sales in Taiwan and Singapore stemmed from better merchandise and the opening of stores selling higher-end products.

Chairman Peter Lau Kwok-kuen said Giordano will continue to invest in Taiwan despite the island's political upheaval, which he expects to end soon.

Giordano, which had 230 outlets in Taiwan at the end of June, plans to add 30 over the next year. A recent Citic Securities report said the expansion in Taiwan would focus on 'price-conscious consumers with less fashion awareness'.

Mr Yue said mainland and Hong Kong sales maintained their first-half growth trend. Sales in China, which accounts for 25 per cent of retail revenue, fell 2 per cent in the first quarter but rose 6.1 per cent in the second. In Hong Kong, which contributes 22 per cent of retail turnover, sales rose 1.4 per cent in the first quarter and 2.5 per cent in the second. Giordano is pinning its hopes for growth on its 'concept' stores, which can be as large as 5,000 square feet compared with 700 to 1,500 sq ft for general stores.