SCMP News: Closure of All 19 Hong Kong Stores by China Resources Group

SCMP News: Closure of Hong Kong Pharmacies by China Resources Group

A health product chain under the state-owned China Resources Group will close all 19 of its Hong Kong branches due to external uncertainties and various operational challenges. CRCare announced on social media on Tuesday that it would shut all stores in the city on November 8, urging customers to redeem products or vouchers with reward points before that day.

The company also stated that it would stop accepting new reward scheme members or giving out points from Tuesday. Local retail sales have shown no signs of rebounding in recent months, prompting many companies to close down branches, including Uselect and Pricerite, among others.

Retail Sales in Decline

According to the latest government statistics, Hong Kong’s retail sales declined for a sixth straight month year on year in August, falling by 10.1 per cent to HK$29.2 billion (US$3.8 billion). Authorities have attributed the retail scene’s performance to increasing outbound holiday travel, a relatively strong Hong Kong dollar, and changing consumer habits, such as residents opting for cheaper goods and services across the border.

Financial Performance of China Resources Pharmaceutical Group Limited

An interim report released by China Resources Pharmaceutical Group Limited in late August stated it operated 760 retail pharmacies in Hong Kong and mainland China under its CRCare and Teck Soon Hong brands, down from 809 last year. The organization, a subsidiary of China Resources Group, recorded a total revenue of 128 billion yuan for a six-month period ending on June 30 of this year, a 4.7 percent increase from the same period in 2023.

In terms of pharmaceutical retail, which accounted for 3.9 per cent of the revenue, an uptick of 9.3 percent year on year was recorded, bringing in 4 billion yuan.