759 STORE, over 247 shops in Hong Kong, announced debut of online shopping on 8 August.
759 STORE is an fast-expanding local retail chain which aims to provide more choice of necessities soured over the world, rather than Wellcome and PARKnSHOP, for HK locals. The store succeeds in adopting proactive pricing policy and fast moving product flow, it has been expanding its network in fast pace since the opening of its first shop in 2010, it reached 247 shops in Hong Kong as of March 2015.
CEC International Holdings (0759.HK), the sole operator of 759 STORES, reported about 5-6% drop of 759 STORE’s sales in the past few months due to weakening retails market, so 759 STORE will extend its business to internet selling and launch its first online shopping platform (759 Online) on 8 August in hope of boosting the sales.
The company aims to sell products worth HK$10 million online in its start-up stage. In the beginning, only selected type of products will be offered on its e-shop for marketing study, more items will be available later. In the first week, only pet products will be off-the-shelf, followed by household articles in the second week and personal care items in the third.
Company chairman Lam Wai-chun said 759online may take five years to make money due to the high logistic costs and the time needed for local consumers to become mature internet users. The store would hire logistics firms to deliver the shopping and trucks would be dispatched for delivery of bulky items.
As of March 2015, 759 STORE had 247 outlets, contributing 85.3 percent of CEC’s annual revenue last year. CEC has developed a catering business since August last year, by opening 759 Wonton Noodle and 759 Cafe.
Hong Kong Television Network (1137.HK) launched a local online shopping platform named HKTV Mall, selling a wide range of products from imported food to furniture. It officially began in February 2015, but no data about the business have been released.
CEC International slumped 2.42 percent to HK$2.02 yesterday.