Japan Home Centre denies closure rumours amid renovation clearance sales

Lifestyle products retailer Japan Home Centre’s (JHC) mother company International Housewares Retail Company has denied the rumours of potential JHC chain closures despite "renovation clearance" and "lease expired" notices appearing at several retail locations.

According to the statement released by the listed company on HKEX on Monday (14 July), chairman Ngai Lai Ha said the board has noticed certain media reports speculating that JHC is suspected to be facing complete closure.

"The group hereby solemnly declares that these claims are entirely unfounded and without factual basis,” the statement reads. Its financial operations remain stable, with sound liquidity and prudent capital management, Ngai said. 

This follows reports from several citizens that JHC branches across Hong Kong were offering 50% discounts during renovation clearances, prompting them to voice concerns on social media about the chain potentially closing down. Some customers also noticed "lease expired" notices at various stores, according to on.cc and HK01.

Ngai stated that the group has implemented a comprehensive business reform strategy aimed at enhancing operational efficiency and market competitiveness in response to changing market dynamics. This includes optimising the store network by rationalising layouts and negotiating with landlords to reduce operating costs and improve overall efficiency.

Additionally, the group is revamping its product strategy by expanding the procurement of affordable, high-quality, and value-for-money items while introducing a competitive pricing strategy to provide greater value to customers. It will also implement a "Light consumption, speed retailing" model (輕消費，快零售), emphasising a more convenient and affordable shopping experience aimed at delivering daily value for customers.

Despite this, the group has issued a profit warning, forecasting a 51% to 57% decline in annual profits compared to last year's HK$100 million. This drop is attributed to weak consumer sentiment, changing purchasing behaviours, and competition from mainland eCommerce platforms, which have collectively led to a 5.6% year-on-year decrease in revenue.

Looking ahead, Ngai said the group will continue to closely monitor market trends and adjust strategies to ensure sustainable business development. “We remain confident in our future prospects and express our gratitude to shareholders, customers, and partners for their ongoing trust and support,” she added.

Established in 1991, JHC is known for its wide range of products, including kitchenware, home décor, and personal care items. It has transformed from a "HK$10 fixed-price discount store" into a specialised home goods retailer, boasting over 380 branches globally, including locations in Hong Kong, Singapore, Macau, Cambodia, Eastern Malaysia, and Australia, according to JHC's website.

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