2026 Aug 27
AEON Stores (Hong Kong) Co., Limited

AEON STORES ANNOUNCES 2026 INTERIM RESULTS HONG KONG BUSINESS REFORM STARTS TO DELIVER RESULTS; CHINESE MAINLAND BUSINESS ACCELERATES TRANSFORMATION FOCUS ON ENHANCING PROFITABILITY, CASH FLOW AND LONG-TERM CORPORATE VALUE

AEON Stores (Hong Kong) Co., Limited (“AEON Stores”or the“Group”; Stock code: 984) has today announced its interim results for the six months ended 30 June 2026. Facing challenges including structural changes in Hong Kong's retail market and a weaker-than-expected consumption recovery in the Chinese Mainland, the Group has continued to implement a series of reform initiatives, including merchandise reform, digital transformation and operating structure optimization. Through continuously strengthening product competitiveness, operational efficiency and organizational agility, the Group is committed to building sustainable competitive advantages in an increasingly uncertain market environment.

For the six months ended 30 June 2026, the Group's revenue decreased by 1.8% year-on-year to HK$3,859.5 million (2025 1H: HK$3,930.7 million). Gross profit margin was 27.1% (2025 1H: 28.0%). Loss attributable to owners of the Company amounted to HK$239.0 million (2025 1H: loss of HK$217.4 million). The Group maintained a healthy financial position, with cash and bank balances and short-term deposits amounting to HK$620.1 million as at 30 June 2026 (31 December 2025: HK$608.8 million).

Mr. Takenori Nagashima, Managing Director of AEON Stores, said,“The Group has always remained customer-centric and proactively advanced merchandise structure reform, expansion of private brands, supply chain optimization, digital transformation, store network restructuring and cost structure improvement, so as to enhance business resilience and adaptability to market changes. During the period, the Hong Kong operations began to show improvement amid a challenging retail environment, with revenue edging down by only 0.6% while losses narrowed by 27.7% year-on-year, reflecting the gradual results of merchandise reform, cost optimization and operational efficiency enhancement. The performance of the Chinese Mainland operations fell short of management's expectations. The Group will face these challenges candidly and accelerate store optimization, merchandise structure reform and cost control, while regarding the enhancement of profitability, cash flow and capital efficiency as key priorities for future development.”

Hong Kong Operations

The Hong Kong economy performed strongly in the first half of 2026, and the local retail sector maintained positive momentum. During the period, the Group continued to deepen merchandise reform and strengthen the competitiveness of its private brand products. Sales of private brand merchandise continued to achieve year-on-year growth, with their share of total sales also increasing. In addition to the ongoing development of private brands such as TOPVALU, HÓME CÓORDY, TOPVALU COLLECTION, SELF+SERVICE and ESSEME, the Group further optimized its merchandise mix and enhanced product differentiation to meet consumers’demand for products that offer high value for money. To celebrate AEON Incorporation 100 Years, the Group launched a major anniversary promotional campaign during the period, attracting customers through various promotional initiatives and special offers. At the same time, the Group continued to organize distinctively themed promotional events, such as the Vietnamese Fair, introducing a wider range of unique overseas products. It also actively launched co-branded products featuring popular IP characters to enhance merchandise appeal and the shopping experience while further strengthening its brand differentiation advantages.

Digital transformation has evolved from a tool solely used for raising efficiency into an important foundation for improving customer experiences and business decision-making. The Group continues to leverage data analytics to increase the precision of merchandise management, marketing campaigns and membership operations, while further bolstering its online-to-offline integration capabilities. The Group also enhances operational efficiency and shopping experience by expanding applications such as self-checkout systems, electronic price tags, X-Trolley smart shopping carts and SSE Loss Prevention System. In addition, it continues to enhance the functionality of the AEON APP and its membership platform. During the period, the e-commerce business maintained strong growth, with online sales increasing by 32.3% year-on-year. In particular, sales through AEONCITY rose by 86.4% year-on-year.

In terms of store expansion, the Group continued to focus on the specialty store model, which offers higher profitability. During the period, five new AEON Mono Mono stores were added. At the same time, the Group prudently reviewed its store network and asset allocation, electing to terminate the lease agreement for the Kowloon City store ahead of schedule to further optimize its store portfolio and resource utilization. As for operational management, the Group continued to advance its structural reform plan by optimizing its supply chain and warehousing network, improving logistics efficiency and strengthening cost management to raise overall operational efficiency. It also improved store cost efficiency through measures such as revitalization and renovation, as well as optimization of leasing arrangements.

In the first half of the year, although the Group's early termination of the lease agreement for the Kowloon City store had a certain negative impact on revenue, the profitability of the Group's Hong Kong operations continued to improve, with revenue only slightly down by 0.6% to HK$1,774.0 million (2025 1H: HK$1,784.1 million). Driven mainly by greater operational efficiency and an improved cost structure, loss from the Hong Kong operations narrowed by 27.7% to HK$117.2 million (2025 1H: loss of HK$162.0 million).

Chinese Mainland Operations

Although the Guangdong economy remained resilient, the retail sector faced pressure from a combination of factors, including adjustments in the real estate market, concerns over employment and income prospects, and intensifying price competition, which made consumers more cautious overall. The Group believes that the performance of the Chinese Mainland operations during the period fell short of management's expectations, and that changes in market competition and the consumption environment posed clear challenges to operations. In response to operating pressures, the Group will accelerate store optimization, merchandise structure reform and cost control in a more candid and pragmatic manner, while continuing to review its store network, merchandise and merchant mix, and operating costs to improve resource allocation and operational quality. During the period, the Group acquired the remaining 35% equity interest in Guangdong AEON Teem Co., Ltd. (“AEON Guangdong”) from Teemall Department Stores to strengthen resource integration across its Chinese Mainland operations. At the same time, it continued to review store performance and enhance its network in response to market changes. As a result,  AEON Zhuhai Yangming Plaza Store ceased operations during the period upon the expiry of its lease agreement. The Group will continue to advance product mix reforms, store network restructuring, supply chain optimization and cost structure improvement to lay the foundation for a return to profitability.

Revenue from the Chinese Mainland operations decreased by 2.8% to HK$2,085.5 million in the first half of the year (2025 1H: HK$2,146.6 million), with a loss incurred amounting to HK$146.0 million (2025 1H: loss of HK$66.1 million).

Prospects

Looking ahead to the second half of the year, structural challenges such as northbound consumption and cross-border e-commerce are expected to persist, and the Group therefore remains cautiously optimistic about the Hong Kong market. In terms of sales, the Group will continue to expand its e-commerce business, deepen the integrated online-and-offline development model, and continue to improve AEON APP, AEONCITY, and its self-pickup and delivery services to enhance shopping convenience and customer engagement. At the same time, the Group will leverage AEON Incorporation 100 Years to launch a range of marketing initiatives, including large-scale themed promotional campaigns, member-exclusive promotions and merchandise featuring popular IP collaborations. These initiatives will attract customers across different age groups and consumer segments, further driving customer traffic and sales.

As for product strategy and profitability, the Group will continue to increase the market penetration of its private brand products and further expand the product portfolio of TOPVALU and other core private brands. Concurrently, the Group will actively expand its direct import business. By strengthening its global sourcing capabilities and optimizing procurement processes, the Group will enhance product differentiation and procurement efficiency, thereby further improving product gross margins and overall profitability. In addition, the Group will continue to implement its“differentiation + high-return”development strategy, actively expand its specialty store operations, and plans to open five new AEON Mono Mono stores in the second half of the year. Regarding the leasing business, the Group will actively enhance tenant acquisition efficiency and optimize its tenant mix to increase stable, recurring non-retail income streams.

In terms of cost management and operational efficiency, the Group will continue to advance its operational reform measures. In logistics, it will optimize its distribution network and warehouse operating model to boost logistics efficiency and reduce related costs. In administration, the Group will enhance operational efficiency through digital transformation, workflow optimization and organizational restructuring, while further reforming store back-end operations. In addition, the Group will continue to bolster expense controls to optimize its cost structure.

Concerning digital transformation, the Group will continue to promote the application of digital and intelligent technologies in store operations to enhance operational efficiency and improve the customer experience. Meanwhile, the Group will join the upgraded AEON Bonus Point Program launched by AEON Credit Service (Asia) Company Limited (stock code: 00900), with the two parties working together to build the AEON ecosystem and further strengthen the synergies between retail and financial services. This initiative is not only an integration of membership systems, but also a significant milestone in the Group’s development of a unified customer ecosystem. By integrating member resources and consumption data across various business segments, the Group will be better positioned to understand customer needs, enhance personalized marketing capabilities and increase customer lifetime value, thereby establishing a more competitive omnichannel retail model and laying a more solid foundation for future sustainable growth.

Meanwhile, the retail market in the Chinese Mainland is entering a new phase of structural adjustment. Against the backdrop of continued policy support in China to boost domestic demand and stimulate consumption, the retail market is poised for gradual improvement. Following the acquisition of the remaining equity interest in AEON Guangdong in the first half of the year and the achievement of full ownership, the Group will further integrate its operations in South China and Guangdong to boost operational efficiency and economies of scale. Building on this, the Group plans to open three AEON Supermarkets in the Greater Bay Area, including Zhuhai, Foshan and Guangzhou, to improve its retail network coverage in key regions. It will also continue to optimize its product and merchant mix, strengthen leasing management, increase tenant revenue and reduce vacancy rates. At the same time, it will make every effort to enhance operational performance by increasing the proportion of private brand products, strengthening product differentiation and deepening cost control.

Mr. Takenori Nagashima concluded,“Looking ahead to the second half of the year, the global geopolitical landscape is expected to remain complex, and the Group will adopt a more prudent strategy to drive its next stage of development. Reforms in the Hong Kong operations have begun to deliver results, with improved revenue performance and a significant narrowing of losses. The Chinese Mainland operations will continue to advance store optimization, merchandise structure reform, supply chain optimization and cost control to address changes in market competition and the consumption environment. Going forward, the Group will continue to receive support from AEON CO., LTD. and actively advance capital structure and liquidity management to enhance financial stability and support future development. The Group will no longer pursue scale growth alone, but will place greater emphasis on profitability, cash flow and capital efficiency, with the enhancement of long-term corporate value as its core objective, striving to create sustainable value for shareholders, customers, employees and other stakeholders.”

• 

• 

> Back to the directory

About AEON Stores
AEON Stores was established in Hong Kong in 1985 and listed on the Hong Kong Stock Exchange in 1994. The Group is mainly engaged in the operation of general retail businesses (General Merchandise Stores and Independent Supermarkets). Currently, it operates 9 GMS, 3 independent supermarkets, 23 independent Living PLAZA by AEON, 27 independent DAISO Japan, 13 AEON Mono Mono and  6 KOMEDA'S Coffee in densely populated districts in Hong Kong. It also operates 18 GMS and 26 independent supermarkets in Guangdong Province, the PRC.

For more information：
AEON Stores (Hong Kong) Co., Limited
Corporate Communication Department
Tel.：（852）2165 0777
Email：[email protected]