City Chain sales plunged 20 percent across Greater China in the three months to June.

Hong Kong-headquartered parent Stelux International – which spun off its eyewear business last year – said the watch-retailing chain’s poor performance was due to a 14.8-per-cent contraction of its store network and “softened consumer demand”.

Group-wide turnover fell 18.8 percent to HK$235.3 million for the June quarter.

City Chain sales in Greater China reached $167.1 million in the quarter, down 20.1 percent, with the store network down from 135 at the end of June last year to just 102.

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Sales in Southeast Asia fell 15.3 percent to $68.2 million with the store network down 36 over a year to 208.