Don Don Donki HK drafts new contracts for pay cuts, refusal leads to termination

Don Don Donki Hong Kong was said to have asked its staff to accept new contract offers, reducing some of its employees' salaries. Staffers who refused to sign the new contract will be terminated, according to a statement issued by the Hong Kong Department Stores and Commercial Staff General Union. The union uploaded a statement on its Facebook, saying that Don Don Donki Hong Kong had required its employees to sign a new contract. Some employees will have a reduced salary after signing the contract. The union also said it was disappointed and regretted that the company had decided to require its staff to take a pay cut although it made money last year.

Previously, Don Don Donki said Hong Kong was one of its most lucrative market with its revenue reaching ¥20.91 billion (US$ 190.5 million), accounting for about 40% of the total revenue of the company in Asia. Its parent company Pan Pacific International Holdings also said is planning to open 12 new stores in Asian markets in the fiscal year ending in June 2022 including four in Singapore, two in Hong Kong with the new Tuen Mun store opened in July, and even one in Macau. Pan Pacific International Holdings also explained its digital data strategy where it will focus on customer understanding by strengthening the capabilities of data analysis; customer contact by expanding channels with customers, including enhanced app functionality; as well as customer experience which includes design and implementation of purchase experiences tailored to customer preferences.

According to DON DON DONKI Hong Kong's website, it is operating nine Don Don Donki stores in Hong Kong. Moving forward, Pan Pacific International Holdings will continue to "pioneer new distribution strategies to drive its international competitiveness, while rapidly pushing forward its store development pathway in Hong Kong." It added that part of its mission is to continue to actively explore the introduction of even more Japanese agricultural, livestock, marine, and hard goods and products, adding to a wide range of unique and highly original items available within its stores in Hong Kong.

However, the Hong Kong retail scene in recent times have taken a battering. A Reuters article published in March said that Hong Kong's retail sales fell in February by 14.6% from a year earlier to HK$25.2 billion ($3.22 billion), official data released on Thursday showed.

The Census and Statistics Department also said the provisional estimate of the value of total retail sales in March 2022 is $23.8 billion, down 13.8% from the same month in 2021. The revised estimate of the value of total retail sales in January and February 2022 combined is 4.9% lower than the same period in 2021. Compared with the same period in 2021, the provisional estimate of the value of total retail sales in the first quarter of 2022 decreased by 7.6%.

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