Retail News CRM

Tag: gold

  • Golden sales for Luk Fook’s first quarter

    Golden sales for Luk Fook’s first quarter

    Same-store sales of gold products have restored growth, jewellery retailer Luk Fook says in announcing the performance of its self-run retail shops for the first quarter, to the end of June.

    It says a relatively low base and “an effective strategy of an enhanced offering of good-value-for-money gold products” helped boost SSSG 5 per cent, a progression over the previous quarter.

    SSSG of 32 per cent in China and 10 per cent in Hong Kong/Macau for gold and gemset jewellery led to 23 per cent growth overall for the period, a significant improvement over the previous quarter.

    On the other hand, the SSSG of gemset jewellery products in the Hong Kong/Macau market rose 9 per cent while gold products stayed flat, a turnaround from a declining trend for more than a year. This resulted in a 3 per cent improvement in the market overall.

    While the group closed two shops in Hong Kong during the quarter, the number of shops in Hong Kong and Macau for the whole year is expected to be about the same. During the period, 14 Luk Fook shops were added on the mainland, five of these licensed outlets.

    As at the end of last month, the group had a total 206 self-run shops – 142 in China, 45 in Hong Kong, 10 in Macau and nine overseas. There were also 1301 licensed shops in China and one in Korea, making a total of 1508 outlets worldwide, of which 1443 were on the mainland.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • Vietnam ranks 8th among world’s top gold consumers

    Vietnam ranks 8th among world’s top gold consumers

    Vietnam ranks eighth among the countries in the world with the highest gold consumption in the first quarter of 2017, shows a recent report by the World Gold Council.

    Vietnam ranks eighth among the countries in the world with the highest gold consumption in the first quarter of 2017.

    As per the report, the demand for gold in Vietnam in Q1 was close to 17 tonnes, a slight rise compared to last year.

    In the first quarter, China topped the list, with a total demand of 280 tonnes of gold, an increase of 8 per cent compared to the same period last year. India came second with 123 tonnes.

    Overall, the total global demand for gold touched 1,035 tonnes in the first quarter of this year, an 18 per cent drop against the same period in 2016.

    Vietnam’s gold consumption has declined over the years, from nearly 100 tonnes in 2013 to 58 tonnes in 2016.

  • Chow Tai Fook Shows Long-Awaited Sales Gains

    Chow Tai Fook Shows Long-Awaited Sales Gains

    Chow Tai Fook saw positive retail sales growth in the fiscal fourth quarter, ending a long run of declines at the Hong Kong-based jeweler. Retail sales in mainland China increased 16%, with same-store sales rising 12% during the three months that ended March 31, the company reported Wednesday. Overall retail sales in Hong Kong and Macau grew 1%, and same-store sales rose 4% — the first quarterly increase in three years in Hong Kong and Macaua, Chow Tai Fook said.

    Driving this growth were sales of gold products – up 17% in mainland China and 19% in Hong Kong and Macau – as the jeweler benefited from a 3% rise in gold prices and a higher average weight per gold product sold. Gem-set jewelry sales rose 5% in mainland China, but fell 17% in the municipalities due to a decline in the average selling price: The company had sold a number of big-ticket items in Hong Kong the previous year that it was unable to match during the reporting period, management explained.

    Chow Tai Fook’s ecommerce sales spiked 85% in mainland China, strengthened by its cooperation with existing online platform partners.

    The company, considered the largest jeweler in the Asia Pacific region, operated 2,381 points of sale at the end of March, of which 2,129 were jewelry locations in mainland China. It opened six jewelry points of sale in China and closed two watch locations during the quarter.

    Lees ook:

    Lees ook:

    Lees ook:

  • When a gold retailer starts selling sunglasses

    When a gold retailer starts selling sunglasses

    Warmer than expected Christmas weather appears to be providing little comfort for Hong Kong’s retail sector this year. Business has been cold at many outlets despite a projected rebound in mainland visitor arrivals.

    Otherwise, what can explain a gold shop branching out into sunglass sales and news that the city’s biggest karaoke operator is scaling down its operation?

    Let’s talk about the gold retail chain first.

    I’m referring to Luk Fook Jewellery, which has just opened its first eyewear store — “Vision Gallery”.

    The new venture comes after the company announced last month a 31.5 percent slide in same-store sales for the six months ended September compared to the same period a year ago.

    The eyewear store has been put up in a prime location, next to an H&M outlet, on Dundas Street in Mongkok.

    Luk Fook is said to have signed a two-year lease for the 600-square-foot retail space, offering a monthly rental of HK$128,000.

    Though the rent is just half what the previous tenant, bankrupt home appliance chain DSC, was paying earlier, there is still this question: why an eyewear shop, instead of another gold store?

    Well, the answer lies in economics.

    Chairman Wong Wai-sheung told Ming Pao that a 1,000-square-foot gold shop, in terms of costs, would be equivalent to opening 10 eyewear stores.

    Guess what? Luk Fook, which currently has 47 gold shops in Hong Kong, has earmarked HK$20 million to open 10 eyewear stores next year, with a focus on the middle class.

    Last year, the company had 50 gold shops in the city.

    To boost Christmas sales at the new eyewear outlet, Luk Fook is giving away a pair of pearl earrings to the customers.

    We are not sure if this is a nice cross-selling idea but would reckon this is a defensive move.

    Luk Fook as well as its competitors such as Chow Tai Fook and Tse Sui Luen have seen their same-store sales fall steeply this year, with 20-30 percent slide in many cases.

    In comparison, an eyewear retailer such as Stelux Holdings has seen its sales dip just 5 percent.

    During its interim results, Luk Fook said it will strive to broaden its income sources, enhance the operational efficiency and reduce costs in order to minimize the impact of the business downturn.

    The foray into eyewear retail is part of that strategy.

    Elsewhere in the city, Karaoke operator Neway has also come up with a new way to survive.

    Rather than open a new venture, Neway is leasing the 4,000 square-feet lobby and first floor at its Causeway Bay flagship store CEO Neway, according to Apple Daily.

    By sub-leasing 30 percent of the original floor area, Neway is trying to shore up revenues which have been hit by a decline in night-time singing parties at its karaoke outlets.

    The plan will also help the company save some HK$1.8 million in monthly rental.

    The sub-leasing of Causeway Bay shop space comes after the group shut down an 18,000-square-foot Mongkok facility last year.

    As much as we miss the grand lobby of CEO Neway and the good old days of group singing, we cannot help but admit that Karaoke outlets are now a bit out of fashion after they dominated the social scene for about twenty years.

    This year, one of the best-selling items at the Golden Computer Arcade in Sham Shui Po is a microphone with karaoke function that sells at no more than HK$500.

    The made-in-China product, which connects through bluetooth with iPad and the home stereo system, has become an immediate hit and is now a must-have during family gatherings.

    If you can get the same kick at home, why bother spending money on a karaoke shop? This seems to be the view of a growing number of people.

    Given this reality, Neway may need to find something else to sell other than songs.

    Lees ook:

    Lees ook:

  • Gold down in Asia after China industrial output

    Gold down in Asia after China industrial output

    Gold prices fell in Asia on Monday after China data mildly disappointed and investors infrastructure spending plans by president-elect Donald Trump with the Republican part in control of both house of the U.S. Congress.

    China said fixed asset investment for October rose 8.3%, beating the 8.2% rise seen year-on-year and industrial production gained 6.1%, below the expected 6.2% rise seen and retail sales increased 10.0%, below the 10.7% increase seen.

    Earlier, Japan reported third quarter GDP jumped 0.5% quarter-on-quarter and at a 2.2% pace year-on-year, handily beating expected gains of 0.2% and 0.9% respectively. Separately, comments from Bank of Japan Governor Haruhiko Kuroda on inflation were noted.

    Gold for December delivery on the Comex division of the New York Mercantile Exchange fell 0.55% to $1,217.55 a troy ounce. Also on the Comex, silver futures for December delivery dropped 1.03% to $17.203 a troy ounce, while copper futures jumped 2.31% increase to $2.565 pound.

    Copper was boosted last week after Trump raised the prospect of increased infrastructure spending, while recent signs of strengthening demand in China have also underpinned prices.

    Later this week, investors will be looking to congressional testimony by Fed Chair Janet Yellen on Thursday for fresh indications on whether interest rates will rise next month.
    Last week, gold prices fell to five month lows on Friday as risk appetite recovered following Trump’s victory in the U.S. presidential election, sapping investor demand for safe haven assets.

    Market sentiment was boosted by optimism that increased fiscal spending and tax cuts under a Trump administration will spur economic growth and inflation.

    Gold prices were also pressured lower by the stronger U.S. dollar and ongoing expectations for a Federal Reserve interest rate increase in December.

    Expectations for higher U.S. interest rates remained intact amid optimism that a pick-up in growth will allow the Fed to tighten borrowing costs.

    Investors currently price an 81.1% chance of a rate hike at the Fed’s December meeting; according to federal funds futures tracked Investing.com’s Fed Rate Monitor Tool.

    Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.

  • Rising price of gold leaves hefty dent in jeweller Luk Fook’s sales

    Rising price of gold leaves hefty dent in jeweller Luk Fook’s sales

    Surging gold prices, and a mini gold rush in 2015 have been blamed by leading Hong Kong jewellery retailer Luk Fook Holdings for a sharp fall in sales during its second quarter.

    The retailer which operates over 1,400 retail outlets in mainland China, Hong Kong, Macau, Singapore and North America, saw same store sales decline 37 per cent in the three months to September (its second quarter) on the same period last year, which was weaker than expected, Bank of America Merrill Lynch analyst Tina Long said in a note.

    Much of the decline was due to gold sales, which recorded a 47 per cent fall in same store sales in the second quarter year on year , worse than competitor Chow Tai Fook’s 36 per cent decline.

    Sales of gemsets, items designed using various types of gem stones, fell 14 per cent, better than the 23 per cent drop seen by peers, but started moving into single digit growth in September and October.

    Sales were better in the mainland than in Hong Kong, which still accounts for 75 per cent of its revenue. Mainland sales fell 23 per cent, while combined sales for Hong Kong and Macau fell 37 per cent in the second quarter.

    Luk Fook’s management said in a statement the deterioration in gold sales this year was being compared with what had been a high base in 2015, thanks to the mini gold rush in July and August.

    That had been coupled with “overall sluggish retail sentiment” and the gold price rally in the same period this year.

    Daiwa analyst Jamie Soo noted that Hong-Kong based competitor Chow Tai Fook had released sales performance figures for the same period which showed a “similarly lacklustre performance”.

    Gold prices rallied to a three-year high in July as investors chose “safe haven” assets following Britain’s vote in June to leave the European Union.

    Gold futures were trading at over US$1,370 per ounce in July and August, but have dropped back down to $1,267.

    Both Long and Soo expect things to get brighter for the jewellery retailer, with Soo noting September had seen low single digit growth, mainly driven by an improvement in sales of gemsets.

    “Management also indicated that there has been slight improvement in gemset sales in Hong Kong and Macau,” he said.

    This momentum had continued into China’s national “golden week” holiday in October, and the management has said they believe there were signs of stabilisation, Soo said.

    Long expected a more favourable movement in the gold price and a better-than-expected recovery in consumer sentiment to help push the price objective up.

    “We think that sales bottomed in July, and kept improving thereafter with positive growth for gemsets seen in both September and October in Hong Kong and mainland,” Long said.

    Long estimated this year’s net income to slip from HK$959 million last year to HK$951 million before bouncing up to HK$1,072 million next year, still down on 2015’s HK$1,615 million.

    Long expected the share price to trend upward, helped by lower rental costs for retail outlets, although she lowered her price objective for Luk Fook from HK$21.70 to HK$21.00.

    “Luk Fook would be the biggest beneficiary from the recent upward trend of gold price due to its smallest hedging ratio of 15 per cent to 20 per cent,” she said.

    “We see re-rating more likely as sentiment towards gold stocks improves.”

    But Long warned that there were a number of risks to the rating, including a slowdown in Hong Kong tourist growth and depreciation of the yuan and gold prices.

    Retail sales in Hong Kong plunged 10.5 per cent in August on dwindling visitor numbers – the steepest decline since February, and the 18th consecutive monthly contraction.

    Luk Fook Holdings was trading at HK$20.25 on Monday, while Chow Tai Fook was trading at HK$5.63.

  • Indonesia, Australia Cooperates on Mining Gold, Copper

    Indonesia, Australia Cooperates on Mining Gold, Copper

    National mining company PT. Aneka Tambang (ANTAM) and Australian mining company Newcrest Mining Ltd. are building a partnership in order to explore gold and copper potential in Indonesia.

    A statement released by the Australian Embassy on Sunday, November 6, 2016, mentioned that the collaboration document between both countries was signed by Indonesian Trade Minister Enggartiasto Lukita and Head of the Investment Coordinating Board Thomas Lembong in Sidney.

    Australian Ambassador to Indonesia Paul Grigson, who was present during the document signing, also welcomed the collaboration. “Two-way investment is a form of acknowledgment that both countries’ economics have many potential to offer,” Paul said.

    Indonesia and Australia have decided to raise economic issues in both countries’ bilateral partnership by reviving the Indonesia-Australia Comprehensive Economic Partnership Agreement (IACEPA), according to Grigson.

    “More investment means joint prosperity,” Grigson said, while adding that increasing investments will create new job opportunities for both countries.

    Indonesia-Australia partnership in the gold and copper mining sector has been established since late 2015 in the form of preliminary studies.

    The preliminary studies were later followed up with a joint exploration in Indonesia.

    Lees ook:

    Lees ook:

    Lees ook:

  • Gold futures maintain losses after retail sales data

    Gold futures maintain losses after retail sales data

    Gold prices managed to trade above the psychological resistance of $1,100 per Oz on US day session Monday.

    Platinum for October delivery dropped Dollars (90.49 percent) to close at USD 995.00 per ounce. Spot prices earlier reached a three-week high of $1,126.31, 4.5% above last month’s low. Bullion rose in the previous five days.

    The rebound that began at the start of this week broke out above a prolonged consolidation pattern just above late July’s new 5-year intraday low of 1077. So far, there’s no telling how the Fed will react to China’s surprising currency devaluation, after some positive economic news earlier today.

    “Transparency is always better than having to guess what is happening in the market“, Michael Widmer, head of metal markets research at Bank of America Corp.in London, said by phone. Asian stocks turned mixed as investors weighed the implications of the surprise move, which seemed to end months of officially sanctioned yuan strength. “So some haven seekers have been returning”.

    Gold is ripping higher on Wednesday. It was likely a combination of a temporary slump in the US dollar as market players took profit of long USD trades, and a positivity that the lower renminbi and upcoming stimulus would revive China’s exports growth and subsequently commodity demand. There is also some market conjecture that perhaps this week’s events will cause the Federal Reserve to hold off starting its expected tightening of interest rates yet this year. “I think the point of “liftoff” is close”, Lockhart said in a speech to the Atlanta Press Club. That, however, was predicated on the assumption that the Fed would defer the interest rate hike beyond September.

    The dollar’s moves in U.S. trading were subdued, which meant the PBOC could set Friday’s reference below Thursday’s 6.4010, at around 6.39, said Sean Callow, senior currency strategist at Westpac. On Wednesday, the U.S. Department of Energy will release its own more closely watched figures on the same stockpiles. If the metal were as valueless as a pet rock, as one Wall Street Journal op-ed recently claimed, why would they bother to do this? “This is an act of desperation by the Chinese….”

    US central bankers could raise rates for the first time in almost a decade at a September 16-17 meeting.

    To the extent that the Chinese devaluation reflects economic weakness in China, this will be negative for large U.S. multinationals that do business in that country (and others affected by the currency wars). The government is scheduled to report both weekly jobless claims and July retail sales at 8:30 a.m. EDT.