Health product retailer CRcare announced on Tuesday it would close all of its 19 stores in Hong Kong starting from Nov 8, citing operational and business challenges.
Retail sector insiders attributed the shut-down of the large-scale retail chain to the COVID-19 pandemic’s protracted impact on the economy and residents’ and tourists’ changing consumption habits, expressing concerns about the potential ripple effect on other shops.
The company stated that customers holding valid memberships and points can exchange them for vouchers or products at its stores until Nov 7, a day before the closure.
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CRcare mentioned that it reached its decision to cease trading after careful consideration of various operational challenges and uncertainties in the business. The company said it has halted new membership applications and the issuance of membership points from Tuesday.
On the day of closure, the entire membership program will cease operation, which will render all the membership rights invalid, including points, discounts and rewards.
CRcare was established in 1999. As a division of China Resources Pharmaceutical Group, the company focuses on health-related goods and services. It previously operated 150 outlets in Hong Kong and the Chinese mainland.
Eric Chung Pok-man, the general officer of the Hong Kong Department Stores & Commercial Staff General Union, said that as early as July, he was informed that CRcare was considering whether to transfer some of its employees to different positions or reassign them to undertake other businesses as part of operational adjustments.
Chung stated that over 10 members of his union are employees of CRcare. Citing these employees, he noted that CRcare used to have dozens of stores at its peak, but foot traffic significantly decreased after the pandemic.
Lam Chi-chung, the union’s general-secretary, estimated that around 50 employees would be impacted once all the company’s stores ceased operations by November, noting that he had noticed the successive closures of CRcare stores previously.
Regarding the reasons for the shut-down, Lam suggested factors such as residents traveling to Chinese mainland for shopping and reducing local shopping, and a shift in spending patterns among visitors to Hong Kong.
Lam noted that as one of the larger-scale retail chains in Hong Kong, the closure of CRcare has raised concerns within the industry. He said he hoped that the improvement in the stock market could boost residents’ confidence, stimulate the overall economy and facilitate the recovery of the retail sector.
