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CK Tang sticks to vision and regains profitability after 12 years
SINGAPORE retailer CK Tang Limited has finally resumed profitabilityafter 12 years, recording an aftertax profit and minority interest of S$1.1 million (US$667,192) for its financial year ended 31 March 2005.
Its operating profit has improved by an overwhelming 139.5% from S$1.7 million in 2004 to S$4 million this year. According to a company statement, this was made possible by a 2.7% reduction in total expenses due to stringent cost controls, as well as lower operating costs, with the closure of its department store in Kuala Lumpur.
Improved margins at Tangs’ main and speciality stores in Singapore have pushed up gross profits from 31.8% to 33.2%, making up for the S$15.5-million loss of sales contribution from the closure in Kuala Lumpur.
Tang Wee Sung, chairman and CEO of CK Tang, had attributed the company’s performance to much planning, hard work and sacrifice. The efforts entailed a major configuration of levels
2 and 3 of the Singapore store which, upon completion last November, has helped Tangs to achieve a more varied and vibrant merchandising mix (see pages 32-33, RETAIL ASIA, February 2005).
“We stuck through to our vision of remaking Tangs in the eyes of the customer, innovating and thinking out-ofthe- box to give them a truly unique shopping experience coupled with exceptional service,” said Tang.
The group will continue to reconfigure and reposition its Singapore averstore to enhance its retail offerings and cater for increasingly discerning customers.
Tang is also confident that better consumer sentiments and higher tourist arrivals will enhance the business prospects for the year.
Despite the continuing challenges of keen competition, and increasing labour and operating costs facing the retail industry, the group expects to sustain its improvement in operating performance for the financial year ending 31 March 2006, he said.