Hong Kong headquartered retailer ParknShop has confirmed that its managing director for the China area, Hicks Feng, has resigned.
The public relations department of ParknShop said that Feng's departure is for personal reasons. However, industry insiders said it might be related to ParknShop's slow development and poor performance in the Chinese mainland market over the past two years.
Before joining ParknShop, Feng worked for Carrefour for 15 years. At the beginning of 2003, to accelerate its expansion in the mainland market, ParknShop invited Feng to be its general manager for the China area. Under Feng's leadership, the number of ParknShop stores in mainland China increased from 19 to 42.
However, since the beginning of 2007, the company has not opened any new stores in its mainland headquarters city of Guangzhou and its flagship store in Shanghai was even closed at the end of 2008, making ParknShop one the first major retailers to shut down a store in Shanghai since the outbreak of the global financial crisis.