Aeon Group has vowed to continue its Asian expansion, despite significant losses in two key markets, according to media reports.
The Japanese retail giant’s Hong and China division posted a net loss of US$3.4m over the first half of 2013. Profit in Hong Kong dropped an alarming 60.5 per cent to HK$23.8m, despite a 16.4 per cent rise in revenue. Aeon cited rising operation costs for the performance.
The group lost RMB98.8m in mainland China, which it attributed to a slowdown in economic growth.
Aeon is also experiencing a decrease in its customer base in Asia, as the instability of the stock market continues to impact the retail industry. However, Aeon managing director Christine Chan said the company has not been deterred by the result, with plans to cautiously grow it operations still in place.
“We will make the effort to change our stores and make a solid rebound,” Chan told Inside Retail Asia.
Aeon has made a bid for Hong Kong supermarket chain ParknShop. The retailer currently operates 43 stores in Hong Kong and 23 in China.
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