DFI Retail: Not yet affected by the Middle East conflict

The senior executives of Singapore-listed DFI Retail Group, which includes brands like 7-Eleven, IKEA, and Mannings, stated that the military conflict in the Middle East has led to the closure of the Strait of Hormuz for over a month. Currently, the impact on product supply and transportation costs is minimal, and there are no plans to adjust product prices. IKEA: Stable Supply in Hong Kong, Real Estate Boosts Business Li Chaocheng, Managing Director of IKEA North Asia, pointed out that the products in the Hong Kong market are mainly supplied by the Fengxian distribution center in mainland China, which has not been affected by the current conflict. Since the outbreak of the war, 97% of the products remain in stock, ensuring stable supply. He added that the atmosphere in the Hong Kong real estate market has improved since the beginning of this year, positively impacting the home furnishings business. In addition to maintaining two major promotions a year, the company will continue to set up short-term pop-up stores in regional shopping malls to enhance customer experience and brand penetration. As for European products, while it cannot be ruled out that future transportation may need to shift to land routes to Asia, the impact on the Hong Kong market is limited. 7-Eleven: Minimal Impact on Transportation Costs, Continuing Store Expansion Ray Lee, Executive Director of 7-Eleven Hong Kong and Macau, stated that although diesel prices have risen significantly recently, local transportation costs account for only a small portion of the company's overall expenses and do not pose pressure on operations. This year, to celebrate the brand's 45th anniversary in Hong Kong, a series of promotional activities, including the launch of proprietary IP products, will be introduced. Currently, the number of stores in Hong Kong has reached 1,088, and there will be moderate expansion of the store network this year. Mannings: Store Expansion Plans in Hong Kong Remain Unchanged, Quarterly Business Records Single-Digit Growth Regarding Mannings, which previously announced its withdrawal from physical stores in mainland China, Liu Jiachang, Executive Director for Hong Kong, Macau, and China, revealed that there are currently 307 stores in Hong Kong, and it is expected that this number will increase to over 310 by the end of the year. New stores will be located in newly developed areas, densely populated areas, and the Terminal 2 passenger terminal at the airport. He mentioned that about 70% of Mannings stores serve the local community. The recent Easter and Qingming Festival holidays saw a temporary impact on daily business due to a large number of citizens traveling abroad, but because the company launched promotional activities in March, the overall business volume in March and April recorded single-digit growth