Giordano Turns Down 163 Home Stores

Recently Giordano International released its first quarter 2013 operating report, showing that sales in the first quarter were HK$1,514 million, which was a 6% increase from the same period of last year. However, in addition to the additional sales in the fourth quarter of last year, the sales in the first quarter decreased year-on-year. 1%. At the same time, Giordano had to face the pain of losing many stores. The reporter noted that last year Hong Kong tycoon Cheng Yu-tung added shares in Giordano, and it has not yet made new moves.

The more troubling news about the mainland's deep-set store closure is that Giordano's first-quarter earnings report shows that in the first quarter of 2013, Giordano’s sales in the Mainland fell by 5%, and sales in Hong Kong and Taiwan fell by 5%. The main reason for the decrease in sales of mainland brands was that last year the Mainland closed 163 stores, of which 26 were self-operated stores and 137 were franchised stores. The main reason for closing the store was that Giordano repositioned the business significantly, instead focusing on the quality of the first-line stores, and the profitability, financial capabilities, and brand position of the major strategic markets.

As of March 31 this year, Giordano Group's global sales network was 2,624 stores, compared with 2,705 stores in the same period last year, a decrease of 81 from the same period last year.

In fact, Giordano is considered a historical clothing brand and was founded in 1980 by a Hong Kong businessman, Li Zhiying, who specializes in the retail of mid- to low-end casual wear. He was listed in Hong Kong in June 1991. Last year, Giordano International gained a majority shareholder, Zhou Dafu, and New World owner Cheng Yuxi, holding more than 25%, when the stock price rose 4.52% to HK$5.55. Yesterday, Giordano's stock price was 7.76 Hong Kong dollars, down 0.26%.

Casual clothing business is facing challenges "No stranger to the world" is Giordano's slogan, once popular. Since Giordano opened its first store in Guangzhou in August 1992, it has set a precedent for Guangzhou's casual clothing store. With the continuous development of business, Giordano has established several stores in Shenzhen, Guangzhou, Dongguan and Taiping. However, in recent years, many people in the apparel industry have clearly felt that Giordano has slowly faded out of mainstream consumer groups.

As the negative impact of the financial crisis continues to deepen and the economic growth of the Mainland slows down, sportswear has first been hit. Some media reports have reported that Anta, Li Ning, Peak, China Trends, Xtep, and 361 Degrees had owned stores that were close to 50,000, but In the past year, 5,000 were closed. So, whether the tide of this store has spread to casual wear?

“Casual clothing has a wider audience than sportswear and fashion, so when faced with economic slowdown and downward pressure on consumerism, it will last longer, but it is still difficult to stay alone.” Executive Committee of Guangdong Circulation Industry Chamber of Commerce Huang Wenjie told reporters that the impact of the market downturn on the apparel industry has caused the entire apparel industry to fall to the bottom. “At present, garment companies are still in the bottoming stage.” Huang Wenjie believes that due to the real estate industry's impact on the retail industry generally lags from 6 months to 9 months, with the gradual recovery of the Chinese real estate industry, the retail industry including the survival of the garment industry Pressure will also slow down.