Parkson positive about China operations as number of global outlets shrinks to 85 from 102

KUALA LUMPUR (April 26): Parkson Holdings Bhd chairman Tan Sri William Cheng Heng Jem said the retail group, which has seen the number of owned and managed stores shrink to 85 from 102, remains positive about its China retail operations' prospects although Covid-19 containment measures and inflationary pressures remain a concern for the group's Southeast Asian business.

According to Parkson Holdings' latest 2021 annual report which was filed with Bursa Malaysia on Tuesday (April 26, 2022), the group which 102 owned and managed stores across Malaysia, China, Vietnam and Indonesia as at June 30, 2020 saw its number of owned and managed stores reduced to 85 as at Dec 31, 2021 as the number of outlets in Malaysia and Vietnam shrank while the company no longer had any Indonesian outlets.

"The group had ceased to have control over the subsidiary in Indonesia with effect from May 17, 2021," Parkson Holdings said.

On China, Cheng said in Parkson Holdings' annual report that the group remains positive about the prospects of its retailing operations there despite repeated Covid-19 outbreaks as the consumer market there adapts to the new normal.

"The group will continue to strive to improve consumer experience in order to fully capture potential opportunities provided by the Chinese retail market besides continuing to diversify the income sources, establish online and offline sales channels, and promote long-term sustainable development of its businesses," he said.

On Parkson Holdings' Southeast Asian business, Cheng said Covid-19 containment measures and inflationary pressures remain a concern for its retail operations in the region.

"Notwithstanding these, the group continues to focus its priorities on enhancing product offerings, optimising operational efficiency and productivity, carrying out tactical promotional activities as well as cost control management," he said.

According to Parkson Holdings' annual report, the group's Malaysian operations comprised 38 outlets as at Dec 31, 2021 compared with 42 as at June 30, 2020 while the number of outlets in Vietnam was reduced to two from four.

In contrast, Parkson Holdings' China operations recorded an increase in the number of outlets to 45 from 41 previously, its annual report showed.

At 3.40pm on Tuesday (April 26, 2022), Parkson Holdings shares were traded 0.5 sen or 3.03% higher at 17 sen, which brings its market capitalisation to about RM195.5 million.

Parkson Holdings' latest reported number of outstanding shares stood at 1.15 billion, according to the company's Bursa filing on March 3, 2022.