DFI Retail Group intends to continue developing its supermarket presence in Hong Kong, including through new outlets and upgrades to existing stores, despite cautious consumer demand, reported South China Morning Post.
The group’s local supermarket portfolio includes Wellcome, Market Place, 3hreesixty, and Oliver’s. Together, the chains operate more than 325 stores and serve over 14 million customers each month.
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DFI’s food division recorded a 1.4% increase in first-half sales to $1.14bn. However, same-store sales declined by 0.2% as more Hong Kong residents travelled to Shenzhen for lower-cost shopping and dining.
The retailer is responding by expanding the range of countries from which it imports products, a move intended to reduce prices and support sales.
DFI also entered a commercial agreement with South Korean producer CJ Foods – projected to generate more than $22m in sales – and rolled out promotional initiatives such as Australian specialty food showcases.
Darren Chan, managing director for food in Hong Kong and Macau at DFI Retail Group, stated that the company is “looking for opportunities to strengthen” its network where there is “clear customer demand and attractive long-term returns”.
“We invest in both new stores and our existing stores,” Chan said.
“We open stores where they can better serve local communities, while continuing to modernise our existing network to ensure our store remains attractive, convenient and relevant to evolving customer needs.”
Census and Statistics Department data cited in the report shows that overall retail receipts in Hong Kong rose 8.5% year on year through the first eight months of the year.
Over the same period, standalone grocery turnover grew 1.4%, with aggregate supermarket sales increasing 1.5%.
DFI, which was previously known as Dairy Farm, also owns and operates Mannings, 7-Eleven, and Ikea in Hong Kong.
Its wider operations include Guardian outlets in Southeast Asia, 7-Eleven stores in Macau, Guangdong province, and Singapore, and Ikea stores in Macau, Taiwan, and Indonesia.
In June last year, DFI divested its 22.2% holding in Philippine multiformat retailer Robinsons Retail as part of a broader strategy to streamline its operations and focus on a more concentrated business structure.
