Fortress, the consumer electronics and home appliances business of Hutchison Whampoa, said it had not lost its appetite for expansion, although its priorities were to create demand and to control costs in the face of the economic downturn.
'We didn't change our strategy to expand and we are still looking into expanding now, as the lease terms seem better,' said managing director Gary Ng Wang-yu.
The retailer, which has 50 outlets in Hong Kong and Macau, plans to open two more stores this month.
Mr Ng said that in the near term, Fortress would focus on providing cheaper products and better service to lure customers, whose desire to buy had waned as many companies laid off employees.
'The impact of negative news surfaced at the end of the fourth quarter because of the layoffs, rather than during the third quarter, when some small to medium-sized companies collapsed,' he said.
Fortress recorded a single-digit drop in sales revenue in November, which was 'expected' by the management.
Hong Kong's retail sales in October shrank the most since January 2007 as consumers controlled their spending. By value, sales totalled about HK$20.8 billion, up 0.3 per cent year on year. By volume, sales fell 4.3 per cent, government data shows.