Retail in Asia

In Shops

Li & Fung faces threat as retail supplier

For the past century, Li & Fung Ltd. has been supplying everything from shoes to baby clothes for such global retailers as Target Corp. and Wal-Mart Stores Inc. But after decades of rapid expansion, the company is logging shrinking profit margins.

Now, an even greater threat looms: retailers working directly with factories and cutting out middlemen like Li & Fung.

The company’s shares this month have posted their biggest drop since listing on the Hong Kong Stock Exchange in 1992, and several brokerage firms have downgraded the stock.


To view the full article (note: you must be a Wall Street Journal Online subscriber), visit The Wall Street Journal Online.

(Source: The Wall Street Journal Online)