LUK FOOK TO EXPAND PRESENCE IN CHINA AND CUT BACK IN HONG KONG
Hong Kong-based jewellery retailer Luk Fook is planning to add stores in mainland China and Macau while cutting back its presence in Hong Kong due to a sales slump in Hong Kong in 2019, Rough & Polished reports.
According to the report, Luk Fook seeks to add 300 stores in lower-tier cities in mainland China and Macau (after subtracting closures) in the current fiscal year.
In the last quarter of 2019 (ended December 31), Luk Fook’s same-store sales dropped 25% “amid mass street protest and lower tourist arrivals in Hong Kong, as well as the high price of gold”. Sales in Mainland China dropped moderately (3%). In the first two weeks of January, the jeweller’s sales in Hong Kong continued to decline “but at a gentler pace, while growth continued in Macau”.