The encyclopedia · Sales & Retail · Strategic decision · 2024
CRCare had 90 stores in Hong Kong at its peak — on 8 October 2024, it closed the last 19
China Resources' health and beauty chain blamed 'external uncertainties'. Two months earlier it still had 25 stores. Watsons said it was still hiring.
CRCare · China Resources Pharmaceutical · 2024-10-08
What happened
CRCare (華潤堂), a health and personal-care retail chain operated by China Resources Pharmaceutical, announced on 8 October 2024 that it would close all its remaining Hong Kong stores by 8 November. At the time of the announcement, 19 stores were left. Two months earlier, the chain still had 25 — about a quarter of the network had already gone. At its peak, CRCare had more than 90 stores across Hong Kong.
The company said its business had been 'affected by external uncertainties and various operational challenges'. Reporting attributed the decline to several factors: business fell after the COVID-19 pandemic, previous attempts to transform the business and diversify products were unsuccessful, and competition from similar health and beauty retailers — particularly Watsons — was intense. Hong Kong's retail sector had not fully recovered.
The closure was part of a broader 2024 Hong Kong retail contraction that saw 37 brands cease operations. Watsons, the dominant health and beauty chain, responded to CRCare's closure by saying it was continuing its recruitment plans and welcoming affected CRCare staff to apply.
Why it happened
- CRCare was squeezed between Watsons, which had scale and brand recognition, and Mannings, which had its own loyal customer base — the middle position offered no defensible advantage
- Post-pandemic foot traffic in Hong Kong's shopping districts did not return to pre-2019 levels, and the northbound travel trend drew spending to mainland China
- Transformation attempts — diversifying products, adjusting the store format — did not fix the fundamental problem: the chain lacked a reason for customers to choose it over the larger competitors
- The parent company, China Resources Pharmaceutical, made the decision to cut losses rather than fund a further turnaround attempt in a market that was structurally shrinking
The lesson
A beauty chain selling the same products as the leader, at the same prices, in the same malls, is renting shelf space the leader owns — when foot traffic falls, the smaller chain closes first.
Aftermath
CRCare made arrangements for members, points and vouchers ahead of the 8 November closure. The chain's exit left Watsons and Mannings as the dominant health and beauty retailers in Hong Kong. The closure was cited in Hong Kong media as part of the 2024 retail contraction, alongside 36 other brand closures that year.
Sources
- HK01: CRCare closes all Hong Kong stores on 8 November
- HKET: CRCare says business affected by external uncertainties
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