Priecrite Group which is a furniture retailer from Hong Kong has said that it is taking a lot more cost-cutting measures and these measures have been drastic in comparison to what they had been dealing with when the outbreak of SARS had been in the year 2003. They have said that they are facing a tough task if the landlords are not going to cut the rents quicker for helping the industry overcome the impacts of the epidemic of coronavirus.
This company, whose household goods and home furnishing outlets, has shut down over four branches in the past few months when the anti-government protests had hit the foot traffic and also pummeled sales. They may also surrender leases on as many as eight stores as this latest scare of health has delivered one more blow to their bottom line.
The sales are under a lot of pressure and the customer flow has been lessened in the last nine months by a level of 30 per cent, as per them in a statement which had come out on Sunday. In case the situation does not get better, they will be forced to cut jobs and also shut a lot of stores.
Experts feel that the landlords are telling them that they are looking at difficulties for offering a reduction in rent however they also hope that they are able to tackle this challenging time by partnerships. They feel that the rate of unemployment in Hong Kong just cannot be allowed to get worse any more.
The announcement has highlighted the economic impact which the coronavirus has had in addition to the health impact which it has been causing.