Burberry acquires total control of China business

Burberry has taken full control of its retail business in China, snapping up the final 15% it did not own for £54m.

The FTSE 100 fashion group first acquired retail operations in the People's Republic in 2010 and on Monday confirmed the acquisition of 15% economic interest in its China business held by Sparkle Roll Holdings Limited, a non-group company.

Last year, mainland China, which accounts for about half the retail spend of Burberry's Chinese customers, was relatively stable but Hong Kong, which accounted for 9% of global retail/wholesale revenue, saw challenges continue from the previous year due to significantly lower footfall.

The company has been looking to cut costs to ensure all stores in Hong Kong remained profitable, with a recent first quarter trading update revealing some improvement compared to the fourth quarter but a continued double-digit percentage decline in comparable sales.

Like-for-like sales in mainland China were broadly unchanged in the first quarter as the store portfolio in the major Beijing market is 'evolved'.