The Hong Kong-listed casual apparel retailer Giordano International has announced that because of the economic recession, the company would suspend all new store projects outside the Chinese mainland and will freeze recruitment.
In addition, the company has closed six under-performing outlets in Hong Kong and 11 in Taiwan.
According to Liu Guoquan, chairman of Giordano, consumer confidence has declined rapidly owing to the global financial crisis and the company's sales in Hong Kong and Taiwan decreased by double-digits in October 2008 compared with the same period last year.
A report from the company shows that its sales increased only 3.6% in the third quarter of 2008 — attributed to its 25.3% growth in the Chinese mainland market. From July to September 2008, Giordano opened 15 new retail outlets and the number of stores worldwide reached 1,949 by September 30, 2008. As at June 30, 2008, Giordano had employed about 10,800 employees around the world.