Retail in Asia

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China’s Peak Sports to cull 800 stores

China’s Sportswear and equipment retailer Peak Sports Products plans to cut about 800 mainland stores this year as it battles slowing sales growth, which has sliced its bottom line.

The company blamed a sluggish economy, rising costs and increased competition in sports shoes and clothing for a 5.4 percent fall in net profit to CNY777.7 million (USD122.69m) last year. Same-store sales growth for 7,806 outlets fell to 1.7 percent in the fourth quarter of last year, from 12.7 percent in the first quarter, it said.

Chief executive Xu Zhihua said the company would purge less profitable outlets to boost efficiency.

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(Source: scmp.com)