Parkson China Releases Quarterly Retail Performance Report

Beijing-headquartered retailer Parkson Retail Group Limited has published its unaudited report for the first quarter of 2011 via Hong Kong Exchanges and Clearing Limited, stating that its sales of individual stores increased by 13.9%.

According to the report, the company's gross sales proceeds for the quarter increased by 19.6% to CNY4.573 billion; its same store sales growth improved to 13.9%; its profit from operations for the quarter increased by 17.6% to CNY461.7 million; and its profit attributable to shareholders increased by 21.6% to CNY328.4 million.

The group generated total merchandise sales of CNY4.37 billion. Concessionaire sales continued to outgrow the direct sales for the quarter under review. Concessionaire sales contributed approximately 90.2% of the merchandise sales with the balance of 9.8% coming from the direct sales. The fashion and apparel category made up 48% of the total merchandise sales, the cosmetics and accessories category contributed 41%, the household and electrical product category contributed 3.7% and the balance of 7.3% coming from the groceries and perishables category.

In addition, during the three months ended March 31, 2011, Parkson's profit attributable to shareholders reportedly increased by 21.6% to CNY328.4 million, driven by the growth of profit from operations and substantial reduction of the finance cost. The growth of profit attributable was however partly offset by the marginally higher effective tax rate.

In 1994, Parkson opened its first department store in Beijing, positioning at the middle and middle-upper end of the retail market of China. To date, it is one of the premier retail operators having an extensive network of department stores covering 30 major cities in China.