Dive Summary:
- Chinese retail sales grew at their slowest pace in nine years during January and February on the heels of weak economic growth in 2012, increasing wages and large inventories.
- Jewelry store chains like Chow Sang Sang and Luk Fook are expected to benefit most from an expected slight increase in Chinese consumer spending this year, primarily due to their lack of inventory.
- Although the country is expected to become the world's largest retail market in the next three years, the outlook for 2013 remains discouraging for apparel, footwear and appliance retailers, as well as companies like Wal-Mart Stores Inc and Nike Inc who are banking on China's billion-plus consumers as a source of growth.
From the article:
HONG KONG, March 26 (Reuters) - High street jewellery chains Chow Sang Sang and Luk Fook are best placed among retailers in China to weather what promises to be another turbulent year after an uncertain economy sapped consumer confidence and cut earnings.
Retail sales grew at the slowest pace in nine years this January and February, adding to the woes of top footwear retailer Belle International Holdings and sportswear group Li Ning Co Ltd who, like others, were battered by weaker economic growth, rising wages and huge inventories. ...
