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Tag: circle k

  • Oatly Barista Edition rolls out in Circle K stores in Northern Europe

    Oatly Barista Edition rolls out in Circle K stores in Northern Europe

    Swedish plant-based alt-milk producer Oatly has partnered with the convenience store chain Circle K to introduce its Barista Edition beverage across stores in Estonia, Lithuania, and Latvia.

    The Oatly Barista Edition is a plant-based, dairy-free alternative that the company claims provides the same creamy taste, frothy texture, and functionality as traditional coffee creamers.

    Skirmantas Maciukas, VP of Circle K Baltics, stated that the collaboration with Oatly is part of its mission to provide plant-based options for customers throughout the Baltics.

    “Our mission is to make our customers’ lives a little easier every day,” he added.

    Circle K is owned by Canadian convenience store giant Alimentation Couche-Tard, which operates the brand in more than 20 markets worldwide.

    Recently, Oatly also partnered with Nespresso for a limited-release Barista Edition coffee capsules.

  • Couche-Tard acquires Circle K business in Hong Kong

    Couche-Tard acquires Circle K business in Hong Kong

    Convenience Retail Asia Ltd said on Thursday it had agreed to sell its convenience store business in Hong Kong to Canadian convenience store and road transportation fuel retailer Alimentation Couche-Tard Inc for HK$2.79 billion ($359.8 million).

    The Circle K convenience stores and Saint Honore bakery chain operator plans to declare a special dividend of HK$3.85 per share to its shareholders, with the dividend to be paid before the end of 2020, the firm said in a filing to the Hong Kong bourse.

    The convenience store business, with a net asset value of HK$622 million as of end-June 2020, comprises of 340 Circle K stores in Hong Kong, and the net proceeds will be used to pay the special dividend, the Hong Kong-listed firm added.

  • Fung Group sells Circle K retail network

    Fung Group sells Circle K retail network

    Fung Group has sold its Guangzhou Circle K-store network to Chinese retailer Suning for an undisclosed sum.

    Facing intense competition in the mainland convenience-store market, the network of 61 outlets has failed to make a profit since the brand’s launch there in 2002. The Guangzhou Circle K business recorded a net loss of HK$21.4 million in 2014 before then parent Convenience Retail Asia sold the business to its 41-per-cent shareholder Fung Group the following year for $48 million (US$6.12 million). Since then, Fung Group has closed at least 12 stores there.

    Suning Xiaodian, Suning.com’s convenience-store business, will take over the Guangzhou Circle K stores, broadening its footprint in the city.

    Convenience Retail Asia continues to own and operate more than 300 Circle K stores in Hong Kong, Macau, and Zhuhai.

    The president of Suning’s consumer-goods business, Bian Nong, said Circle K’s experience in merchandising, supply chain and store management will supplement Suning’s existing operations in Guangzhou.

    Suning has been rapidly expanding its brick-and-mortar store business in recent months, acquiring supermarkets from Carrefour and the Chinese business of Spanish grocer Distribuidora Internacional de Alimentacion.

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  • DHL Express Helps Out on Circle K’s e-commerce deliveries in Hong Kong

    DHL Express Helps Out on Circle K’s e-commerce deliveries in Hong Kong

    DHL Express has extended its On Demand Delivery service to more than 300 Circle K stores across Hong Kong.

    Customers will be able to visit Circle K stores to pick up their overseas merchandise, “whenever and wherever it is convenient,” said a DHL spokesperson.

    Receivers are notified via email or short-messaging system (SMS) about a shipment’s progress.

    A mobile-optimized website allows them to choose from a selection of delivery options including redirecting the delivery to a DHL service point or nearby convenience store.

    Added the spokesperson: “DHL Express couriers will be notified of these delivery preferences in real-time, ensuring shipments are delivered at the right time, to the right place and at the utmost convenience to the customer.”

    The addition of the Circle K stores, customers can now choose from more than 600 convenient locations in Hong Kong.

    DHL Express has added a new feature – Courier Time Window – which will send an SMS reminder to receivers on the day of delivery to alert them to a specific timeframe when they can expect their delivery. Receivers could request for changes in delivery time and location to avoid a missed delivery if they are on the move.

    Herbert Vongpusanachai, senior vice president, managing director, DHL Express Hong Kong and Macau, said: “The growth of online shopping has fuelled the need for greater delivery offering. On Demand Delivery provides an intuitive and flexible delivery option that customers can be in control of.”

    Krystie Tang, general manager, marketing & purchasing at Circle K, said: “This new partnership with DHL Express allows us to serve our customers better by offering them the chance to be in control of the last mile fulfilment service of their online shopping experience.”

    On Demand Delivery is now available in more than 160 countries and territories and in 45 languages globally.

  • Big Big Shop partnering up with Circle K

    Big Big Shop partnering up with Circle K

    Shoppers buying goods online from Television Broadcasts Limited’s Big Big Shop will be able to collect their purchases at any Circle K Convenience store across town.

    The click-and-collect service results from a partnership between TVB and Convenience Retail Asia signed this week. Big Big Shop was launched in July last year.

    “Circle K is a perfect match for Big Big Shop which will provide our customers with a convenient click-and-collect service,” said Mark Lee, group CEO at TVB.

    “Location is everything. Circle K has more than 330 stores conveniently located in Hong Kong.”

    Lee said synergising with TVB’s promotional power, Big Big Shop adopts a ‘show-and-sell strategy’ by marketing advertiser-sponsored products on TVB’s prime-time shows.

    “During the eight months’ operation of Big Big Shop, the show-and-sell strategy has proven to be a success in motivating viewers to buy online, notably in the sales of kitchen appliances by German Pool; quality frozen meat and seafood by Gourmet; package tours by Big Line Holiday; and George Lam concert tickets.

    “With Circle K as our logistics partner, we will be able to greatly expand the range of products available at Big Big Shop by including more vendors who don’t necessarily have the delivery capability. The partnership with Circle K will offer an even better shopping experience to our customers. It marks an important step in our e-commerce fulfillment and development of online-to-offline business strategy,” Lee said.

    CRA CEO Richard Yeung said Circle K is committed to providing convenient, efficient and quality services that enable Hong Kong consumers to enjoy better and easier lives.

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  • Fung Retailing, Alibaba to collaborate bringing lifestyle brands into China

    Fung Retailing, Alibaba to collaborate bringing lifestyle brands into China

    Fung Retailing and Alibaba have formed a strategic partnership to launch more international lifestyle brands in Mainland China. The partnership will bring closer Alibaba’s 600-million user base and Fung Retailing’s 3000+ network of stores across Greater China, UK, France, South Korea, Singapore, Malaysia, Thailand and the Philippines. Its partly- or majority-owned businesses include Circle K and Zoff (under Convenience Retail Asia), Trinity, Toys R Us, Suhyang Networks, the UCCAL Fashion Group and Branded Lifestyle Holdings.

    The Fung Retailing and Alibaba collaboration aims to meet the increasing demand of Chinese consumers, building on the strengths of both parties in online and offline retailing, the two companies said in a statement. At the same time, it will better serve global brands by leveraging Fung Retailing’s global portfolio of brands, offline retail channels and marketing know-how, as well as Alibaba’s ecosystem, digital retail leadership, technology, and consumer insights.

    “That will help global brands tailor their product development and marketing strategies to meet the ever-changing needs of Chinese consumers,” the statement said. “The brands can also draw on Alibaba’s new retail channels, including Tmall and Intime, as well as Fung Retailing’s offline stores, thereby reducing costs, risks, and the time traditionally associated with entering the China market.”

    Photo: At the Fung Retailing and Alibaba MOU signing ceremony this week, from left: Sabrina Fung, group MD of Fung Retailing, Dr Victor Fung, group chairman of the Fung Group; Daniel Zhang, CEO of Alibaba Group; and Toby Xu, VP of Alibaba Group.

    Under a memorandum of understanding signed this week, both companies will join forces in global brand recruitment and offer brands merchandising, marketing and omnichannel distribution services. This collaboration will focus on the mainland China market as a first step, and potentially expand to other regions riding on Alibaba’s platforms.

    Speaking during the signing ceremony in Shanghai, Alibaba CEO Daniel Zhang said Alibaba wants to help global brands expand their foothold in China by fully integrating its New Retail capabilities, big data and technology with Fung Retailing’s “unparalleled advantages in brand and supply chain resources”.

    “We believe this partnership represents the beginning of a new chapter for New Retail.”

    Fung Retailing’s group MD Sabrina Fung said retail is changing exponentially, so it’s important to stay ahead of the curve, which this agreement allows the company to do.

    “Through this exciting strategic partnership with Alibaba, we will help customers navigate the full Chinese retail economy and reach China’s 1.4 billion consumers more easily. In this evolving retail landscape, and faced with changing consumer behavior and disruptive retail technologies, we are focused on developing new ways to do business,” she said.

     

  • Circle K Hong Kong sales boosted by digital

    Circle K Hong Kong sales boosted by digital

    Digital and creative marketing strategies have been credited for rising sales at Hong Kong Circle K and Saint Honore stores in the first half of this year.

    Parent Convenience Retail Asia says the combined operations achieved sales of HK$2.574 billion and drove core operating profit up 16 per cent to $81 million in the six months to June 30.

    “The robust results were mainly due to effective eCRM programs for Circle K and Saint Honore as well as encouraging performance in developing businesses, particularly the new fast-fashion eyewear business Zoff,” the company said.

    The group’s O2O business model which synergises Circle K’s OK Stamp It – eCRM app (driving online to offline traffic) and Circle K’s bricks-and-mortar store network (driving offline to online traffic), achieved a significant membership milestone, exceeding 1.1 million people and generated “a strong increase in comparable-store sales”.

    In a commentary accompanying the results, CEO Richard Yeung Lap Bun said Convenience Retail Asia would continued to follow its ‘Three Plus’ strategies to achieve growth: focusing on smartphone-savvy ‘internet+’ customers; delivering the ‘4P’s+’ of exceptional products, promotions, places and pricing; ‘plus’ a great customer experience; and reinforcing its transformation into a ‘brick-and-mortar+’ O2O enterprise.

    The group closed two Circle K Hong Kong stores during the period, and opened two, taking its network to 332. First-half sales for the chain rose 4.4 per cent, contributing total sales of $2.061 billion, largely driven by the OK Stamp It eCRM platform.

    “OK Stamp It uses a special app to deliver promotional deals and loyalty program offers to members. It is a proven tool for marketing the group’s latest products, services, contests and premiums, and a valuable customer loyalty platform that drives online traffic into in-store traffic and repeat purchases. It also enables family members and friends to share their activities on their favourite social media,” he said.

    In April, the group launched a three-stage summer promotion for OK Stamp It members. First was the return of the popular Shake Shake Lucky Star game, which gave members the chance to win one of 100 Samsung Galaxy S9 smartphones; the second was a collaboration with Zoff, which offered free sunglasses for the first 1000 members who purchased all nine selected items of newly imported ice cream brands from Japan and Korea; and the third was a World Cup-themed game with 100 grand prizes of Cathay Holiday coupons valued at HK$10,000 each.

    “Launched less than two years ago, OK Stamp It has already become one of Hong Kong’s leading eCRM platforms,” said Yeung.

    Saint Honore Cake Shop

    At the end of the period, Convenience Retail Asia had 103 Saint Honore stores in Hong Kong and Macau, five more than at the same time a year earlier. It has another 33 in Guangzhou and Shenzhen.

    “Although our bakery operations saw stagnant growth in comparable store sales in Hong Kong over the first six months of the year, total turnover grew on the back of key contributions from the opening of new stores in Hong Kong and an increase in festive product sales,” said Yeung.

    However, gross profit margin was eroded by the appreciation of the renminbi, which caused surges in raw material and labour costs.

    Zoff grows

    Convenience Retail Asia opened its second store operating under the Japanese eyewear brand Zoff during the half year.

    Zoff currently carries more than 1200 SKUs of frames and there are plans to expand this to more than 2000 SKUs, which Yeung says will strengthen product variety and differentiate the brand from competitors even more.

    The second store opened on February 23 at Telford Plaza in Kowloon Bay.

    Meanwhile, the company’s other developing business, FingerShopping.com achieved stable turnover.

    As at the end of June, Fingershopping.com featured some 25,000 SKUs from more than 1700 brands on its e-commerce platform.

    “Beauty and personal care continued to be the anchor category, representing 64 per cent of total gross merchandise volume and the team will continue to build variety within the site’s primary categories and seek strategic partners to boost new traffic,” said Yeung.

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  • Profits up for Circle K Hong Kong

    Profits up for Circle K Hong Kong

    As the retail sector finally rebounds, the CEO of Circle K Hong Kong owner Convenience Retail Asia (CRA), Richard Yeung, says the company has reinvented itself.

    He says profits have grown over the past year, while strong customer loyalty and marketing initiatives and an O2O business strategy have positioned the group for long-term growth.

    By moving its convenience store and bakery businesses toward an O2O-centric business strategy has led to a highly sustainable business model. “The strategy has been a resounding success in terms of driving customer engagement, foot traffic and sales.”

    Despite a challenging business environment, the group’s convenience store and bakery businesses had achieved satisfactory comparable-store sales growth in Hong Kong.

    Core operating profit and net profit increased by 7.4 and 7.7 per cent respectively, mainly attributable to the effectiveness of the CRM program and strong marketing campaigns by Circle K together with improved performance from Saint Honore cake shops.

    Growth has been driven by the group’s digital initiatives, led by its O2O CRM programs that saw its “OK Stamp It” and “Cake Easy” memberships exceeding 1 million and 300,000 respectively.

    During the year the group obtained the franchise for Japan’s fast-fashion eyewear chain Zoff, opening the brand’s first store in Hong Kong.

    Group turnover grew 4.6 per cent to HK$5 billion.

    Turnover for the Circle K Hong Kong business was HK$4 billion (US$5 billion), representing growth of 5.4 per cent. Turnover for the Saint Honore Cake Shop business across Hong Kong, Macau and southern China was $1 billion, an increase of 1.9 per cent.

    Core operating profit increased 7.4 per cent to $183 million while net profit grew 7.7 per cent to $150 million.

    Satisfactory comparable-store sales growth in the group’s core market of Hong Kong and improvements to the Saint Honore factory business led to a rise in gross margin and other income as a percentage of turnover from 36.6 to 36.9 per cent, despite intense retail market competition and high manufacturing costs, says the group.

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  • Circle K Hong Kong parent focused on digital to boost growth

    Circle K Hong Kong parent focused on digital to boost growth

    Despite a challenging business environment, Circle K Hong Kong parent Convenience Retail Asia reports comparable-store sales growth last year driven by digital initiatives.

    Leading the way were O2O customer-relationship management (CRM) programs, with membership for “OK Stamp It” (Circle K) and “Cake Easy” (Saint Honore) exceeding 1 million and 300,000 respectively.

    Group revenue was up 4.6 per cent to HK$5.09 million. The core operating profit rose 7.4 per cent to $182,594 while net profit grew by 7.7 per cent.

    During the year, the group’s O2O digital retailing platform FingerShopping.com saw moderate growth in gross merchandising volume (GMV). It also achieved high pick-up and payment rates at Circle K stores in Hong Kong and Macau. Beauty and personal care continued to be the anchor category, representing about 70 per cent of total GMV.

    Turnover for the convenience-store business grew 5.4 per cent to $4.05 billion, with comparable store sales up 4.2 per cent. Turnover for the bakery business increased 1.9 per cent to $1.09 billion, with comparable store sales in Hong Kong growing 5.2 per cent.

    Gross margin and other income as a percentage of turnover increased 0.3 points to 36.9 per cent despite keen competition in the retail market and high manufacturing costs.

    At the end of December the group had 332 Circle K stores, with 10 opening in Hong Kong and nine being closed.

    Eighteen months after its launch, “OK Stamp It” has attracted more than 1 million members and won industry awards for excellence.

    At the end of December, the group had 102 Saint Honore cake shops in Hong Kong and Macau. Thirteen stores were opened and nine closed during the year. There were also 41 Saint Honore locations in Guangzhou and Shenzhen.

    The digital CRM program “Cake Easy” had more than 300,000 members by the end of the year.

    During the year the group obtained the franchise for Japan’s fast-fashion eyewear chain Zoff, opening the brand’s first store in Hong Kong.

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  • EPS helps elderly to withdraw money at circle K stores

    EPS helps elderly to withdraw money at circle K stores

    EPS Company (Hong Kong) has introduced a service that enables the territory’s elderly to withdraw small amounts of cash at Circle K convenience stores.

    The first phase of EPS EasyCash for Senior Citizens has been launched as an extension to the EPS EasyCash service. It allows senior citizens to withdraw money at designated stores without needing to make a purchase.

    EPS GM Raymond So says the company hopes to engage more business partners and plans to expand the service to most districts in Hong Kong by the end of this year.

    “Making customers’ lives easier is Circle K’s core motto,” says CEO Richard Yeung of parent company Convenience Retail Asia. “With Circle K’s extensive network, we hope to provide the community in need with a convenient and fast cash withdrawal channel through this co-operation.”

    To use the service, elders simply go to the counter at  Circle K store and present their senior-citizen card and ATM card issued by EPS member banks. Circle K staff members will help elders make withdrawals of up to HK$500 (in multiples of HK$100).

    In the first phase, the service will start in 34 Circle K convenience stores across Tin Shui Wai, Sheung Shui, Yuen Long, Cheung Chau and Tung Chung, Lantau Island. By the end of the year, the service will be available at most Circle K stores in Hong Kong.

    Established in 1884, EPS Company is a consortium of 20 major banks in Hong Kong with a mission is to provide greater convenience for customers and merchants through electronic payment transfers. Its EPS secured cashless retail payment system is available at more than 30,000 locations in Hong Kong and Macau.

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  • Strong first half for Circle K Hong Kong parent

    Strong first half for Circle K Hong Kong parent

    Despite weak retail market sentiment, Convenience Retail Asia’s Circle K Hong Kong convenience stores and Saint Honore bakeries achieved solid first-half comparable-store sales growth.

    CRA’s interim results show an increase of 9.9 per cent in core operating profit and a 10.2 per cent rise in net profit, mainly because of effective marketing for Circle K Hong Kong and continuing improvement in the Saint Honore business, says CEO Richard Yeung Lap Bun.

    During the six months, the group’s turnover increased 3.8 per cent to HK$2.427 billion (US$310.2  million), with turnover for conveniences growing 4.9 per cent to $1.9 billion, and comparable-store sales growing 4.6 per cent year on year.

    Bakery turnover eased 0.9 per cent to $491 million, with 5.9 per cent growth in comparable-store sales, offset by fewer festive products sales in Hong Kong.

    Gross margin and other income as a percentage of turnover increased by 0.4 points to 36.3 per cent despite competition in the retail market and high manufacturing costs. The group says improvement in the efficiency of Saint Honore factory production was one of the key contributors to the margin growth.

    Overall, the group’s core operating profit reached $70 million while net profit was $57 million.

    O2O strategy

    Membership of Circle K’s O2O CRM program “OK Stamp It” exceeded 750,000 by the end of June. The digital marketing platform was launched in the third quarter of last year as part of a strategy to attract smartphone-savvy consumers and convert online traffic into store traffic. Users download an app to access e-stamp offers and incentives, then visit a Circle K Hong Kong store to redeem them.

    At the end of the half-year, CRA operated 331 Circle K stores. Six were opened in the first half while a similar number were closed. Near the end of last year, Circle K opened its first flagship store, in Causeway Bay. This offers a self-service cafe with free high-speed Wi-Fi internet access and mobile phone charging.

    The number of Saint Honore stores in Hong Kong and Macau was also constant at 98, with four openings and four closing during the first half. There were also 43 Saint Honore stores in Guangzhou and Shenzhen.

    At the end of June the group’s O2O digital retailing platform FingerShopping.com featured more than 1500 brands and about 25,000 stock-keeping units. Beauty and personal care continued to be the anchor category, while the baby-and-family and healthcare categories showed strong growth.

    Gross merchandise volume growth was 20 per cent during the period while membership grew by 300 per cent to 552,000.

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  • Vietnam convenience store growth to lead Asia

    Vietnam convenience store growth to lead Asia

    Vietnam will be the fastest-growing convenience market in Asia by 2021, predicts international grocery research organisation IGD.

    According to the researcher, Asia’s grocery market will be the largest in the world with predicted 6.3 per cent of compound annual growth rate, up to US$4.8 trillion by 2021.

    Of that, the convenience store sector will see double-digit compound annual growth in the next four years.

    IGD predicts the Vietnam convenience store market will grow by 37.4 per cent in that time, followed by the Philippines at 24.2 per cent and Indonesia at 15.8 per cent. Those figures are based on assessments of the performance of the leading convenience store operators in each market.

    Cstores IGD

    During the past couple years, Vietnam convenience stores have become popular destinations, especially for young consumers. Savvy operators, like Circle K and FamilyMart have recognised local demand for c-stores as a place to not only shop but to hang out as well, providing an air-conditioned area to consume freshly-served convenience foods and snacks, up-to-date merchandising systems, a mix of imported and local goods and –  in some stores – even free Wi-Fi.

    It is also easier for businesses to get licences for stores with footprints under 500 sqm.

    According to IGD, Vietnam, the Philippines and Indonesia share similar characteristics that make their convenience markets particularly ripe for growth, including:

    • Store expansion: In all three markets, major players are speeding up store roll-outs in a battle for marketshare. For example, the number of c-stores operated by the top five retailers in the Philippines has more than doubled during the last five years and retailers are gradually shifting their focus from the capital to more provincial areas for greater opportunities.
    • Local players are gaining a stronger foothold: Asia’s convenience market has traditionally been dominated by Japanese retailers, such as 7-Eleven (which has yet to debut in Vietnam), FamilyMart and Aeon. However, there have been more market consolidations and partnerships and most noticeably, domestic players such as VinMart in Vietnam and SM Retail in the Philippines have been scaling up their operations and establishing leadership in their local markets.
    • Neighbourhood mini-supermarkets are becoming more popular: Apart from the modern convenience store format, local operators such as Indonesia’s Indomaret and Dairy Farm’s Wellcome format in the Philippines have developed a successful neighbourhood mini-supermarkets model, which better cater to local needs. These mini-supermarkets are typically between 150 and 300 sqm in size and are located in residential areas, with a focus on fresh food, top-up grocery and food-for-tonight.

    Thanks to the positive economic outlooks of all three countries, consumers are shifting from traditional wet-markets to the so-called modern trade, like convenience stores and supermarkets.

    Increased GDP per capita and foreign investment have also encouraged the market growth.

    “Among all the brick-and-mortar grocery channels, convenience shows the strongest growth prospects in Asia, thanks to rapid urbanisation, a growing young population and greater levels of disposable income,” says Nick Miles, head of Asia-Pacific at IGD.

  • For 7-Eleven, its all on a par

    For 7-Eleven, its all on a par

    In a sign of how far confidence in the yuan has fallen, 7-Eleven stores are valuing the Chinese currency on a par with the Hong Kong dollar, which was last seen in 2007.

    One yuan fetched HK$1.12 on the foreign currency market yesterday.

    While China’s currency would need to fall 10.7 percent to reach actual parity with the Hong Kong dollar, the exchange rate offered by the city’s largest operator of convenience stores shows how depreciation pressures are making the yuan less attractive to hold.

    “The recent sharp yuan depreciation has hurt local merchants’ willingness to accept yuan,” said Kevin Lai, chief economist for Asia excluding Japan at Daiwa Capital Markets in Hong Kong.

    “The fact that they demand a bigger premium in the exchange rate to accept yuan payments shows the outlook is pretty negative for the Chinese currency.”

    Trading the yuan at parity with the Hong Kong dollar by local retail chain may be a new norm to avoid foreign exchange risk amid a weakening Chinese currency, said Hang Seng Bank (0011) acting chief economist Thomas Shik Chun-sing, who expects the yuan to further soften 3-5 percent this year.

    7-Eleven adjusted its yuan rate in light of recent drastic fluctuations in the currency and will change it whenever necessary, a company spokesman said in an e-mailed reply to questions.

    The convenience store chain has more than 900 stores in Hong Kong and is part of Jardine Matheson Holdings’ Dairy Farm.

    Signs in Circle K, another major convenience store chain, offer an exchange rate of 100 yuan per HK$105. Rates at cosmetic retail chain Sa Sa and Mannings, a personal health retailer under Dairy Farm, are both 100 yuan per HK$110.

    The yuan plunged about 12 percent against the greenback last year.

  • Rakuten Books expands store pickups

    Rakuten Books expands store pickups

    Customers of Rakuten Books can now pick up their online purchases at Lawson convenience stores across Japan.

    This follows the forming of a collaboration between Rakuten and the Lawson chain, which has 11,922 stores around Japan, plus 100 Lawson Store outlets.

    Customers who buy products from Rakuten Books can pick up their purchases from the Lawson convenience store of their choice. The stores are open 24 hours a day, 365 days a year. Shipping is free, and customers opt to pay for their goods at the store counter.

    Rakuten Books’ pickup service launched in 2008, with next-day delivery service for certain products and regions added in 2013, broadened last year. Its latest move takes the service nationwide exclusively for Lawson stores. Goods will no longer be available for pickup at Circle K and Sunkus.

    Books, CDs and DVDs bought at Rakuten Books can be picked up from a Lawon store on the evening of the second day after the order is placed (one day longer than express home delivery), and the goods will be held in-store for one week.

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  • Circle K Hong Kong sales defy downturn

    Circle K Hong Kong sales defy downturn

    Circle K Hong Kong sales rose 4.7 per cent in the first half of this year, defying the retail downturn.

    Parent Convenience Retail Asia has reported an overall turnover boost of 3.4 per cent to HK$2.339 billion. Same-store sales grew 5.2 per cent year on year in the six months to June 30.

    Turnover in the company’s Saint Honore bakery business decreased slightly, by 0.5 per cent to $496 million, with low-single-digit growth in comparable store sales in Hong Kong.

    Convenience Retail Asia has 324 Circle K stores in Hong Kong, 118 in Macau, Zhuhai and Guangzhou; and 94 Saint Honore stores in Hong Kong and 50 in Macau, Shenzhen and Guangzhou.  In the first half of this year, it opened six new Circle K stores in Hong Kong and closed 10 for a net decrease of four, and it opened seven new Saint Honore stores in Hong Kong and closed two for a net increase of five.

    The group’s net profit increased 68.4 per cent to HK$52 million for the six months, primarily due to the disposal of Circle K business in Guangzhou last year..

    “Despite weak retail market sentiment, convenience store and bakery operations achieved

    satisfactory comparable store sales growth in Hong Kong,” the company said in a stock exchange filing. “Core operating profit increased 7% on back of stabilised operating costs and improvement in Saint Honore operations.”

    With the stabilisation of the commercial property rental market, store expansion has become a key growth strategy for the Saint Honore chain.

    Convenience Retail Asia says during the second half of 2016, it will seek to grow profit at existing stores “by continuing to improve efficiency, reduce costs, and drive sales through innovative product development, marketing and category management”.

    “With the commercial rental market on the downswing, cautious store expansion will play a role in driving revenue across the convenience store and bakery businesses.

    “Although the business environment has been challenging, the group’s core operations remain

    strong and healthy, and it has a solid balance sheet with a good cash position. We will continue to monitor the market closely for merger and acquisition opportunities that can help us grow our business, at the same time as we strive for healthy organic growth.”