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Economic downturn to pass the heat on staff count and exec salaries at Pricerite

Economic downturn to pass the heat on staff count and exec salaries at Pricerite

Pricerite is one of the distinguished local hit stores in the furniture and home furnishing segment in Hong Kong. The popular furniture retailer hailed the market with its 27 branches across Hong Kong with approximately 800 employees as of now.

 

Their products and services are of value for money which exceeds customer expectations and brought them a great fan base. However, the overall economic downturn and the unexpected outbreak of Coronavirus have given way to acute financial stress. Moreover, the customer footfall has reduced by a significant 30 percent due to the social movements and epidemics.

 

Pricerite is taking action to sustain the pressure and not contribute to worsening the unemployment rate of the country. Bankee Kwan, the owner of Pricerite, shared the actions that may alter the current situation. He shared that, “We have requested the landlords to offer temporary rent reduction as a partnership move to defy the challenging time.” The company has closed four stores and laid off 10 percent of its frontline staff in the past nine months.  Further, the logistics employees have been requested to avail of unpaid vacations. The salaries of the senior executives were reduced by 20 percent between February through May 2019, and a further reduction will make it a 40 percent pay cut.

 

The furniture retailer is looking for adding surgical masks and cleaning products to its product range for uplifting the sales turnover.

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