MDT Report | Mixed feelings among local retailers over weakened renminbi

Local small and medium-sized retailers have generally shrugged off the news of China’s decision to devalue its currency, announced by the Central government on Tuesday, while jewelers and watch-sellers expressed concerns over the weakened Chinese yuan, the Times learned.
At least three pharmacies located nearby the Border Gate, of which the clientele are comprised largely of mainland buyers, downplayed Beijing’s currency devaluation policy. Their owners don’t believe it will lower the mainlanders’ purchasing power.
“No, at least it’s still higher than Hong Kong dollars and Macau patacas,” said Andy Lam, owner of Farmácia Espirito in reference to the current set of exchange rates. “The currency’s advantage over the other two is still there.”
Helen Chan, who is the owner of another drugstore located opposite Lam’s, was upbeat about the outlook of local retailers, saying that business would soon pick up despite the city recording a five-percent drop in total sales in the first quarter. She staunchly dismissed the possible impacts that have been suggested in the wake of this fresh policy. “No worries at all. They have a need for these shops, the mainland’s reputation for pharmacies is very low,” she said.
Echoing the pair’s remarks was Tim Wong, who worked for the largest chain pharmacy in the territory. The salesman believed that the fall in the Chinese currency rate was “temporary and would rise again before long.”
Against the background of disappointing revenue in the gaming sector, Shirley Chan, who is employed by a large fashion retailing company that operates 12 retailers in the downtown precinct, told the Times that her company saw a 10-percent increase in sales in the first half of the year compared to the equivalent period of last year.
“Our customers showed no reaction [to the currency devaluation] in their buying [habits],” said the shop supervisor, adding that she had only recently learnt about the news. “I guess it’s because we sell mass market brands.”
A watch franchise located along San Malo told the Times that some mainland customers were reluctant to purchase her products due to the unfavorable rate of Hong Kong dollars. “It isn’t worth buying things here in Macau,” she said anonymously, quoting her customer yesterday morning.
Mr. Kuan, who is in charge of a jewelry shop across the avenue, said that his firm “went with the flow” as “there was not much to do about policy changes.” He indicated that the store had endured lukewarm sales yesterday.
Mr. Yip, who manages Good-
year Perfume Centre’s local branch, recognized a shift in the firm’s market. “Most of the consumers overlook the difference of exchange rates, but what matters is the goods they buy,” he said, observing that most of his consumers have moved away from high-
end products to less pricey ones. Staff reporter