Giordano International, a leading retailer in Asia, is seeing sales at its Giordano clothing stores in Hong Kong plummet, as retail competition heats up in the region.

Blaming the financial crisis as the main reason for its poor performance Giordano said that retail store sales in January-March declined 12.8% from the same three months of 2008.

Sales in April were down 14.6% year-to-year.

The fears are the company may follow U-Right International Holdings, whose U-Right clothing stores once dominated in Hong Kong, but liquidated last October.

The success of foreign retailers such as Uniqlo and H&M in HK are suggested by some analysts as the cause for U-Right's failure and Giordano's troubles.

By Michael Fitzpatrick.