Dah Chong Hong to shut 28 retail stores across HK

Hong Kong-based conglomerate Dah Chong Hong (大昌行) (DCH) will cease operations of its 28 DCH Foods’ (大昌行食品) retail stores. Its membership programme will also be discontinued starting from 1 April 2024.

“As the largest food and FMCG distributor in Hong Kong, Dah Chong Hong will continue to serve the local community through its sourcing, distribution and processing operations,” DCH said in a statement to MARKETING-INTERACTIVE.

According to HK01, DCH’s human resources department started issuing termination notices to employees on 15 March, stating that DCH Food Mart (大昌食品市場) has been affected by uncertain external factors and various operational challenges. After thorough deliberation, the company has decided to cease its food market business. Employee contracts will be terminated effective from the end of working hours on 14 April 2024.

The notice also reminds employees that they must not disclose any proprietary or confidential information of the company to external parties without written approval from the company, said the report.

Furthermore, Dah Chong Hong has also issued a notification to its DCH cooking buddies membership programme (大昌煮意兵團會員計劃), stating that in alignment with business development, the programme and its mobile app will cease to operate starting from 1 April 2024.

“Additionally, any electronic coupons within the mobile application will automatically expire on 1 April 2024. If you currently hold any valid electronic coupons, please make sure to use them before their expiration dates,” the notice reads.

Established in 1985, DCH Food Mart provides premium meat and seafood alongside fresh fruit and daily groceries as a one-stop shop for all your home cooking needs. It is currently operating 28 physical retail stores in Hong Kong. 

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The closure of retail chains may be attributed to the increase in competition among cross-border retailers. Recently, Hongkongers have been heading north to snap up cheap deals at Shenzhen’s newly launched megastore Costco to snap up cheap deals ranging from sets of luggage to strawberries and croissants. In fact, there has also been a noticeable trend of more Hong Kong residents visiting mainland China over the past year since the reopening of borders.  

According to data from the Immigration Department, Hong Kong residents made more than 53.3 million departures in 2023 to mainland China. However, mainland Chinese visitors made 26.5 million visits to Hong Kong, which is approximately half of the number of departures made by Hong Kong residents. 

This is also coupled with a survey conducted by Shenzhen Retail Business Association (深圳市零售商業行業協會) states that the preferred shopping places among HongKongers to spend in Shenzhen are mostly shopping malls and large supermarkets, accounting for 78.10% and 60% respectively. Meanwhile, HongKongers spend most on catering, followed by shopping and leisure. 

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