Wellcome, 7-Eleven operator DFI cuts staff amid Hong Kong retail malaise
An email sent to employees by Scott Price, CEO of Hong Kong's largest retail group, and seen by the Post said the company would embark on a series of actions to simplify operations to meet customer expectations of lower prices.
It was unclear how many staff would be let go. DFI, formerly known as Dairy Farm, did not immediately reply to a request for a comment.
In the first six months of the year, DFI reported that it swung to a loss of US$38 million from a profit of US$95 million a year earlier. Hong Kong's retail sales contracted for 14 consecutive months until May, when they rose by 2.4 per cent. In June, retail sales improved by 0.7 per cent from a year earlier.
'The reality is that, over the past five years, our support function costs have increased significantly,' Price said. 'This has added unnecessary complexity, slowed down decision-making, and driven costs into our products that ultimately raise prices for customers.
'That is not sustainable. And it is not aligned with the business we want to be.'
Initiatives the group would undertake included 'reshaping support functions', 'clarifying roles' and 'offshoring and outsourcing selected roles', Price said.
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