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Tag: jewelry

  • Malaysian jeweller looks online to boost sales

    Malaysian jeweller looks online to boost sales

    High-class Malaysian jeweler Aurora Italia International will extend its e-commerce efforts to build sales growth in the coming year.

    The firm, which recently listed on the Bursa Malaysia Securities Leap Market, will diversify its points of sale to expand its brand awareness and customer base via online channels. It will also boost strategic distribution alliances with strong marketing affiliates.

    Aurora’s product range is sold in Malaysia and Singapore, as well as the US, the UK, Indonesia, Hong Kong, and the Middle East via several channels, including own-branded physical stores and on online shopping platforms.

    “The Covid-19 pandemic has resulted in e-commerce business generating increased sales as people shift their spending habits towards online platforms,” said Aurora Italia MD Datin Wira Yvonne Lim. “We saw an increase in online shopping for products including jewelry products during the Movement Control Order.”

    Online sales performance within the industry is believed to be the reason why stores with e-commerce infrastructure operated continuously during the early months of 2020, according to Lim.

    The firm’s listing has seen the equivalent of US$729,000 in funding raised, more than half of which will be used to launch three new retail concept stores in China, Hong Kong, and Thailand.

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  • Luk Fook to close five Hong Kong stores as sales continue to fall

    Luk Fook to close five Hong Kong stores as sales continue to fall

    Luk Fook Holdings has reported a 71-per-cent plunge in first-quarter same-store sales due to the impact of Covid-19 on tourist numbers traveling to Hong Kong.

    However, the company said that entering June, as retail sentiment in Hong Kong and on the mainland gradually improved, the overall same-store sales decline of the company’s self-operated shops narrowed from 76 percent in April and May to 58 percent in June.

    With little likelihood of a quick return of mainland Chinese shoppers into Hong Kong, Luk Fook says it will close about five stores in the territory by the end of this year, which would leave it with 44. However, it plans to open two more in Macau and remains on target to open 150 more on the mainland.

    “The sales decline in the mainland market was lower than the Hong Kong and Macau market as most of the shops in Mainland resumed operations during the quarter and the consumer sentiments recovered gradually,” the company said in a stock-exchange filing.

    Same-store sales at self-operated Lukfook stores on the mainland slumped by 43 percent in April and May but by a lesser 32 percent in June.

    Licensed Lukfook shops, which account for around 95 percent of the company’s mainland network, recorded a lower same-store sales decline of 19 percent compared to that of the self-operated shops, which were mostly located in Northern China and Central China which were more severely impacted by the pandemic during the quarter.

  • Marie France Van Damme launches online platform to support artisans

    Marie France Van Damme launches online platform to support artisans

    Hong Kong designer Marie France Van Damme has launched a new online lifestyle and e-commerce platform Curated by MF.

    The site is designed to support the designer’s personal network of boutique designers, businesses and craftspeople, listing globally sourced curated products and exclusive private label pieces.

    “In a time of health crisis and economic uncertainty, as small business owners, we have to support one another to weather the current downturn,” said Van Damme

    “I have been traveling the world for the past 40 years. On my journey, I have developed relationships with craftspeople from the Souks of Marrakesh, with traders in the bustling streets of Hong Kong and Bangkok, and with small business owners from around the globe. Let me introduce you to my very talented friends who share my passions. They work with the finest artisans, their creations are limited, beautiful, and are ethically sourced.”

    Curated by MF features pieces from L’Objet to Jay Ahr’s limited-edition collection of vintage hand-embroidered Vuitton and Hermes Birkin, Kelly and Constance handbags, among many other boutique items. Van Damme introduces a new designer, featuring a curated selection of their artisanal items, on a fortnightly basis. The snake at the top of this story is a US$10,000 necklace from Lotus Arts de Vivre.

    The designer is known for her globally influenced line of luxury resort, ready-to-wear, and swim garments.

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  • Platinum Jewellery Leads China Jewellery Industry in a V-Shaped Recovery

    Platinum Jewellery Leads China Jewellery Industry in a V-Shaped Recovery

    With manufacturers reporting greater demand volumes and retailers confirming a steady increase in business in April and May, the China jewelry industry finds itself in the midst of a V-shaped recovery in the second quarter of 2020. A confluence of factors has led to platinum becoming a strategic category as the industry embarks upon recovery programs.

    Platinum jewelry manufacturers have been reporting greater demand volumes through April and May as a result of a remarkable level of replenishment purchasing in platinum.  Retailers across the board, from national and Hong Kong chains through regional chains, independents, and wholesalers have shown strong interest in a new generation of designs that provide stronger margins. By May, platinum fabrication volume had returned to a level on par with the same period last year.

    Retailers have witnessed a gradual ramp-up in business volume since the reopening, with some reporting sales of platinum jewelry reaching 80% or higher compared to the same period last year.

    Over-stocking of gold and gem-set jewelry due to lockdowns imposed since January had led to an inventory backlog in these categories. Record high prices for gold have depressed buying among consumers and retailers, while a record low platinum price has made platinum an attractive replacement for some pure gold and k-gold counters, offering improved profit margins and turn.

    This comes at a time when manufacturing partners of Platinum Guild International (PGI) have been prioritizing new collections and design directions to meet changing consumer needs.

    Underpinning this innovation has been the development of new alloys and technologies that PGI has been working with partners in recent years. This includes hard platinum and heat-treatable alloys that allow for refined contours in designs, better polish, better shape retention, and higher resistance to scratch. These innovations are expected to enable platinum to capture a more competitive market position in the jewelry space. The incorporation of new materials including enamels also add color and novelty allowing for more designed collections, such as Chow Tai Fook’s Frozen II and Angel of Peace Collections.

    “Our industry partners in China are reporting a platinum recovery driven by competitive pricing and the launch of new products which utilize innovative new technologies and designs that are capturing the interest of a new generation of consumers. Platinum Guild International’s initiatives to engage with both the jewelry trade and consumers have been extremely effective in accelerating this recovery during post-COVID-19. Despite pandemic uncertainty ahead, we hope conditions will allow for continued foot traffic to stores to ensure the sell through needed for a sustainable recovery,” says CEO Huw Daniel of PGI.

    More players have begun to enter or re-enter the platinum jewelry industry, leading to a rising interest in platinum fabrication. New players from the gem-set and gold retail industries have also started to carry platinum. For example, Shining House, which is a newcomer in platinum gem-set jewelry, now carries platinum in 100 of its 300+ stores in Central and East China, with the intention to include a platinum exclusive collection (“One Life One Love”) to all stores by end of third quarter.

    ”We are prioritizing this new SKUs, with improved production technology, that enables better pricing and recognizable new features for sales push this summer. We believe these SKUs could better help sales recovery,” says Ms. Sun, Product Head of Changzhou Jewellery, a regional prominent retailer in East China.

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  • Chow Tai Fook posts strong profit despite retail turmoil

    Chow Tai Fook posts strong profit despite retail turmoil

    Hong Kong-headquartered jeweler Chow Tai Fook has ended the financial year with a US$374 million profit attributable to shareholders.

    While that is down 36.6 percent on last year, and its worst annual result in a decade, it underpins the strength of the company at a time that retail sales in Hong Kong and China have been ravaged by Covid-19.

    Sales for the year to March fell 14.9 percent to $7.3 billion, with Hong Kong and Macau hardest hit, down 38.7 percent, and on the mainland by 15.1 percent.

    Besides ongoing social unrest in Hong Kong since June last year, which decimated the numbers of inbound tourists from Mainland China, and Covid-19 impacting in the first quarter of this calendar year, rising gold prices also dented consumer demand for jewelry.

    In its earnings statement, Chow Tai Fook said that while Mainland China operations “suffered severely” in the final quarter due to the pandemic, the company has seen signs of recovery as restrictions on shopping and social distancing were lifted and its short-term business outlook is “cautiously optimistic”.

    “We shall continue our market expansion strategy through franchise model as the situation stabilizes and the online-offline channel integrations to take advantage of the digital trends. Also, we shall continue our multi-brand strategy to better serve each unique customer segment.” However, the company expects the Hong Kong and Macau market to remain challenging in the foreseeable future.

    “As the customer base has been reshaped, we shall continue to consolidate our retail network, rationalize cost structure and refine our business strategies. Apart from focusing on store efficiency, we also place an emphasis on transforming our current business model through innovation and technology in order to enhance retail experience, improve operational efficiency and strengthen our market leadership position.”

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  • Indian jeweller Zoya expands in-country

    Indian jeweller Zoya expands in-country

    House of Tata’s luxury jeweler Zoya is launching a boutique in Bangalore. The 3300sqm South Indian flagship is opening a business in the city’s most prominent luxury strip on central Vittal Mallya Road with a venue aiming for an understated ambiance that evokes an appreciation for fine artistry and handcrafted jeweled accessories.

    “Zoya’s collections are inspired by myriad journeys, from the ones that take you across the world to the ones that help you discover your own feminine self,” said Zoya business head Amanpreet Ahluwalia. “The creative process of each jewelry piece can take up to a year from the idea of bringing it alive, resulting in artistic masterpieces, each with its own story to tell.

    “Having received a wonderful response from the North and West of India, we couldn’t have found a location for our Bangalore boutique that resonated more perfectly with the brand.”

    The boutique is conscientiously promoting its in-store sanitization protocols with the country still in the midst of the coronavirus pandemic.

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  • Luk Fook sales down as Covid-19 throttles tourism

    Luk Fook sales down as Covid-19 throttles tourism

    Hong Kong-listed jeweler Luk Fook says its March-quarter same-store sales plunged 57 percent as the Covid-19 outbreak saw the mainland border closed and tourist numbers fall to almost zero.

    Sales of gem-set jewelry were down by 64 percent year on year, and of gold (by weight) by 58 percent.

    The sales decline was worst in Hong Kong and Macau, falling by 60 percent overall due to Macau stores being closed for most of February and March, and low footfall in Hong Kong. The only positive note was that the gold price rose by about 20 percent during the quarter which boosted the average selling price of gem-set jewelry by a similar amount.

    Sales at self-operated stores on the mainland were down by 41 percent and of licensed stores by 32 percent. Most of Luk Fook’s stores on the mainland were closed for the entire month of February and while most reopened in March, the company said foot traffic “largely declined”.

    During the March quarter, Luk Fook permanently closed two stores in Hong Kong and one in Macau. On the mainland it opened a net 26 new stores taking its network to 2046.

    “Given most of the new shops were opened before the outbreak, the expansion plan for FY2020 therefore has not been seriously affected,” the company said in a stock-exchange filing.

    “The net shop addition for the full year was 287 shops, slightly below the target of 300 shops. With the gradual recovery of industrial, consumption and investment activities in Mainland China, the group’s business [on the mainland] improved progressively in the first two weeks of April, while the business in Hong Kong and Macau has not shown obvious signs of recovery due to substantial decline in the number of visitors as compared with the same period last year.”

    To reduce costs during the ongoing pandemic, Luk Fook has adopted a policy of natural turnover and unpaid leave measures for staff to cut labor costs, and negotiated rent relief with landlords. A reduced inventory has left the company in a strong cash position.

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  • How Chinese jeweller Ideal transformed staff into live-streaming KOLs

    How Chinese jeweller Ideal transformed staff into live-streaming KOLs

    Shenzhen’s multi-brand jeweler Ideal has transformed its 18-year-old traditional business model to a New Retail business virtually overnight in light of the coronavirus crisis.

    The retailer rolled out a transformation initiative dubbed “Thousand People, Thousand Stores” by establishing ‘online cloud stores’ through live streaming, turning its ranks of sales associates into live stream broadcasters.

    The jewelry industry traditionally has a high dependency on physical brick-and-mortar outlets due to the nature of the high-ticket items it sells. However, with the pandemic forcing stores to shutter and consumers to stay home, Ideal fast-tracked its New Retail plans originally scheduled for launch in May to navigate the coronavirus crisis in February.

    With several brands under its umbrella, the group had first trialed community marketing with its sister brand Cemni where it garnered more than 100 fan-community groups engaging with more than 50,000 people within three days of launching online. The retailer has admitted it was difficult to turnaround multiple subsidiaries and sub-brands, resulting in a huge test of agility and resilience as it created a virtual ‘store’ experience to replace physical shops.

    The push to go online was undoubtedly driven by the digital-savvy Gen Z consumers in addition to the rising competition from decentralized D2C jewelry brands. Shifting its focus from its traditional business model, Ideal had developed a new younger range of fashionable jewelry pieces, different to its offline offer, to attract a new customer segment online. Its brand-new product selection showcases fine jewelry pieces at an economical price point starting at RMB1000 (US$141), with a diamond ring valued at RMB3000 ($424). Ideal also plans to introduce more luxurious and high-value pieces into the mix as its client base matures with stabilizing spending power.

    The transformation of jeweler Ideal’s physical store network into an online business involved transitioning its in-store sales staff to become live broadcasters, each managing their own ‘store’. Ideal chose to partner with YouZan, a SaaS retail-software and service provider that builds mini-programs within WeChat, which enable brands and influencers to sell natively within the platform. Using YouZan’s platform as a virtual warehouse, its retail stores, and sales associates can now collectively share the total warehouse inventory nationwide.

    The brand curated most marketable products for its online entity and had set up sales associates with YouZan accounts to transact through their own private domains within their WeChat community. Under the new business model, sales associates earn a commission ranging from 10 to 50 percent on each sale, a huge jump from the original 3 percent an employee would have received from in-store sales. With high incentives set in place, Ideal hopes to encourage its sales associates to be more aggressive with their selling. Very early results show more than 2000 pieces sold, achieving more than RMB2 million ($282,000) in revenue. On Valentine’s Day, the brand also sold a 5.01-carat diamond ring for RMB99,000 ($14,000) online.

    To maintain the interest of its franchisees, Ideal has also broadened its transformation strategy to include its partners into the New Retail system. Franchisees’ sales staff are incorporated into the New Retail model, and will not need to carry the cost of goods or the risk of returns.

    IiMedia Research predicts live-streaming e-commerce will hit RMB916 billion (US$129 billion) in value this year and reach 526 million users online. Ideal transformed its sales associates into KOLs firstly by nurturing and empowering them through online training courses. Expanding its existing online business school from 2010, the retailer has supercharged its course-based system to launch more online live courses nationwide. A grading system for sales associates has been set in place with training content customized to their level.

    Ideal has also partnered with an agency managing Tmall live broadcasters to direct and guide its sales associates. Jewelry expert and KOL broadcaster Lan Congge was recruited to train and empower Ideal’s employees in how to successfully upgrade their broadcasting skills to maximize sales.

    Jeweler Ideal has tasked each regional team with pushing out and endorsing the group’s New Retail plan among its employees. Regional stores have curated their own selections according to the consumption characteristics of their local customers. Yet, certain cities with a stronger consumption power are directed to specialize in content creation whereas stores in prefectures are to create more personal and interactive content during live streaming by acting as a personal stylist, offering peer advice and using discounts and promotions to attract new sales.

    As older members of the community are synonymous with existing customers, sales staff look to retain their client base through promotional activity such as birthday offers and personalized recommendations. To attract new and younger clients, sales associates are encouraged to create an interactive and dynamic selling atmosphere such as using flash sales and QR codes for direct orders as a means to shorten the conversion path.

    Bytedance’s short video platform Douyin currently reaches more than 400 million daily active users making it one of the most powerful social media platforms in China. The unique selling point of jeweller Ideal has always been storytelling, so now the company plans to begin marketing the story of the brand and its culture on Douyin.

    As part of its strategy to boost exposure and manipulate its algorithm, the aim is to have each virtual store follow the brand’s main account. From there, Ideal’s official account will reverse-generate interest to each of its individual smaller stores. The Douyin profile will provide content support for thousands of its virtual stores to drive traffic and popularity and in turn boost sales.

    However as Douyin’s e-commerce features are still maturing, Ideal will focus for now on leveraging the platform’s user base to promote its brand culture, while pushing the platform to develop e-commerce as part of its longer-term plan.

  • Coroner hears details of infant’s death at Urban Revivo

    Coroner hears details of infant’s death at Urban Revivo

    A free-standing mirror that crushed an infant to death at an Urban Revivo store at Jewel Changi last August weighed more than 100kg, the Singapore coroner heard yesterday.

    The accident occurred when two six-year-old boys, one a brother of the infant Lai Jiaxin from China, were playing behind it. When one of the boys stepped out from behind the mirror, it tipped over, crushing the one-year-old, causing head injuries from which she later passed away at Changi General Hospital.

    The coroner’s inquest heard that Urban Revivo subsequently removed all free-standing mirrors from the store. All mirrors there now are screwed down and glued to prevent a recurrence of the tragedy.

    Investigation officer Sarah Habibah told the inquest that police do not consider any foul play to be involved in the death, which she described as due to misadventure.

    Jiaxin was one of eight members in a group of family and friends who traveled to Singapore for a four-day holiday. They were at the Urban Revivo stores for some last-minute shopping before a scheduled flight home that afternoon, August 23.

    During the inquest, before State Coroner Kamala Ponnampalam, a video from in-store cameras was played. It showed the two boys running around in the store, under the eye of their grandmothers, while their parents were trying on clothes. The boys went behind the mirror and when they exited separately the mirror fell onto Jiaxin.

    Store staff helped to free the child from beneath the mirror but she was bleeding from her nose and mouth.

    The coroner will deliver her findings on the death on April 15.

  • Venus Tears opens flagship store in Singapore

    Venus Tears opens flagship store in Singapore

    Singaporean and Japanese Bridal jewelry brand Venus Tears has opened a flagship store off Orchard Road.

    Located inside Wisma Atria shopping mall, Venus Tears features wedding bands and engagement rings which are designed and manufactured in Japan. The brand also offers customization of jewelry, ensuring the uniqueness of each item for its customers.

    “Our goal with this new bridal jewelry shop is to make access to our high-quality products even more convenient,” said a spokesperson.

    To mark the launch, Venus Tears flagship store introduced three new lines that are popular in Japan: Colany, Ankhore and Aimokume.

    Venus Tears originally started in Singapore and developed stores in Japan. It is now operating eight outlets in both countries.

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  • Luk Fook sales plummet by half in first two months of 2020

    Luk Fook sales plummet by half in first two months of 2020

    Hong Kong jeweler Luk Fook says its sales halved during the first two months of this year as the coronavirus outbreak caused an extensive lockdown of mainland Chinese cities and visitors to Hong Kong and Macau fell sharply.

    While most mainland stores have reopened this month, customer footfall of the shops operating in Mainland China, Hong Kong and Macau was “still sparse” said chairman and CEO Wai Sheung Wong in a profit warning. “It is expected to take some time for the business to resume normal.

    “Therefore … there will be an acute drop in revenue for the period from January to March. It is therefore highly likely that certain losses will be incurred in the fourth quarter. It may lead to a substantial decline in the group’s revenue and profit for the financial year ending March 31.”

    With Macau stores closed for most of February, sales in the combined Hong Kong and Macau market decreased by more than 50 percent.

    “Economic activities in Mainland China were almost halted due to the outbreak,” said Wong. “In the first two months of this year, industry, consumption and investment all hit record low with the double-digit decline, crashing the macro-economy severely.”

    Group-wide, same-store sales of gold products and gem-set jewelry products in Luk Fook’s own stores were down by 45 percent and 54.9 percent, respectively. In Hong Kong and Macau overall sales were down by 52.8 percent, with gold products down by 47.3 percent and gem-set jewelry products by 58 percent.

    On the mainland, where shops were closed in February, same-store sales fell by 37.1 percent. Gold sales were down by 38.6 percent and gem-set jewelry sales by 31.8 percent.

    Retail sales through licensed shops and self-operated shops of the group in Mainland China fell by half.

    During the pandemic, the company has not replaced staff leaving of their own accord and introduced leave without pay to reduce staffing costs. It has also negotiated rent reductions with landlords.

    Expansion plan on track

    Despite the huge impact of the coronavirus on sales, Luk Fook remains committed to its expansion plan which Wong said “has not been seriously affected”.

    “It is estimated that the net shop additions for the current financial year would only be a bit less than the target of 300 shops. In addition, the group’s unaudited revenue and profit for the period for the nine months ended December 31 were about 60 percent and 55 percent respectively ahead of those for the year ended March 31, last year.”

    He said fourth-quarter operational data will be released in mid April.

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  • Luk Fook sales plummet by half in first two months of 2020

    Luk Fook sales plummet by half in first two months of 2020

    Hong Kong jeweler Luk Fook says its sales halved during the first two months of this year as the coronavirus outbreak caused an extensive lockdown of mainland Chinese cities and visitors to Hong Kong and Macau fell sharply.

    While most mainland stores have reopened this month, customer footfall of the shops operating in Mainland China, Hong Kong and Macau was “still sparse” said chairman and CEO Sheung Wong in a profit warning. “It is expected to take some time for the business to resume normal.

    “Therefore … there will be an acute drop in revenue for the period from January to March. It is therefore highly likely that certain losses will be incurred in the fourth quarter. It may lead to a substantial decline in the group’s revenue and profit for the financial year ending March 31.”

    With Macau stores closed for most of February, sales in the combined Hong Kong and Macau market decreased by more than 50 percent.

    “Economic activities in Mainland China were almost halted due to the outbreak,” said Wong. “In the first two months of this year, industry, consumption and investment all hit record low with the double-digit decline, crashing the macro-economy severely.”

    Group-wide, same-store sales of gold products and gem-set jewelry products in Luk Fook’s own stores were down by 45 percent and 54.9 percent, respectively. In Hong Kong and Macau overall sales were down by 52.8 percent, with gold products down by 47.3 percent and gem-set jewelry products by 58 percent.

    On the mainland, where shops were closed in February, same-store sales fell by 37.1 percent. Gold sales were down by 38.6 percent and gem-set jewelry sales by 31.8 percent.

    Retail sales through licensed shops and self-operated shops of the group in Mainland China fell by half.

    During the pandemic, the company has not replaced staff leaving of their own accord and introduced leave without pay to reduce staffing costs. It has also negotiated rent reductions with landlords.

    Expansion plan on track

    Despite the huge impact of the coronavirus on sales, Luk Fook remains committed to its expansion plan which Wong said “has not been seriously affected”.

    “It is estimated that the net shop additions for the current financial year would only be a bit less than the target of 300 shops. In addition, the group’s unaudited revenue and profit for the period for the nine months ended December 31 were about 60 percent and 55 percent respectively ahead of those for the year ended March 31, last year.”

    He said fourth-quarter operational data will be released in mid-April.

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  • Chow Tai Fook closes 40 stores after sales slump

    Chow Tai Fook closes 40 stores after sales slump

    Hong Kong-based jewelry group Chow Tai Fook has closed 40 stores in Hong Kong after experiencing a 60-per-cent drop in retail sales there amidst the coronavirus outbreak.

    Sales on the mainland fell 42 percent, according to an update on trading for the first two months of this year.

    “In response to the measures of local governments in containing the spread of COVID-19 virus, the majority of our point of sale in Mainland China were temporarily closed since late January, and in Hong Kong and Macau from early February,” read the update.

    “Businesses in both markets were inevitably affected during the period. As of February 29, approximately 70 percent of our points of sale in Mainland China and 64 percent in Hong Kong and Macau had resumed operations.”

    The company said the interest of public health and the safety of its staff remained of utmost importance to the group despite its heavy loss of business.

    Operations at the Chow Tai Fook’s production facilities in Shunde and Shenzhen have resumed operations gradually. Its inventory remains higher than usual in the short term due to a boost in production for the Chinese New Year period of items that now remain unsold.

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  • Luk Fook upbeat despite plans to trim Hong Kong store network

    Luk Fook upbeat despite plans to trim Hong Kong store network

    Hong Kong-headquartered Luk Fook group has followed its archrival Chow Tai Fook in revealing plans to shutter stores in the territory’s tourist areas – but it sees growth opportunities in Macau.

    “The group will reduce the number of shops in areas which are considerably impacted by the social incidents in Hong Kong, and search for opportunities for opening new shops in Macau market,” chairman Wai Sheung Wong advised shareholders in a stock exchange filing.

    However, unlike Chow Tai Fook, which plans to close about 15 stores in Hong Kong when leases come up for renewal from this coming April, Luk Fook still expects to achieve a net gain of three stores this financial year in Hong Kong and Macau.

    “Rental renewal depends very much on whether profit is expected for the relevant shop under new rental,” said Wong. “A single-digit drop in the rental renewal is predicted for the current financial year and a double-digit drop for the next financial year.”

    The continuing impact of the strong gold price, US-China trade war and social incidents in

    Hong Kong on market sentiment saw same-store sales for the jeweler fall by 25 percent during the December quarter. Same-store sales of gold products fell by 20 percent and of gem-set jewelry by 32 percent.

    On a positive note, the overall decline eased when compared to the previous quarter. Sales in Hong Kong and on the mainland fell by a lower rate than in the September quarter, while the Macau market returned to growth since October. Sales in Hong Kong and Macau fell by 27 percent, which the group attributed to a high gold price and a “substantial decline” in the number of visitors to Hong Kong contributed by the recent ongoing social activities.

    In the first two weeks of January, the same-store sales decline gradually narrowed in Hong Kong and there was continued growth momentum in Macau.

    Luk Fook has responded to falling sales by reducing staff, however this has been achieved by natural turnover without the need for a redundancy scheme.

    As of December 31, the group had 1969 Lukfook shops, 45 Goldstyle shops, three Dear Q stores and three 3D-Gold shops operating on the mainland – 2020 in all.

    “Apart from actively seeking expansion opportunities in Macau, the group will also speed up expansion in Mainland, with the target of at least 300 net shop additions there for the 2020 financial year, most of which would be licensed shops at low-tier cities,” said Wong.

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  • Chow Tai Fook closing more Hong Kong stores

    Chow Tai Fook closing more Hong Kong stores

    Chow Tai Fook Jewellery Group has revealed plans to shut about one in five of its Hong Kong stores, the majority of them in prime tourist areas.

    The closures will take effect when leases come up for renewal throughout this year, starting from April according to an emailed statement cited by Bloomberg.

    The move follows announcements by Prada and Louis Vuitton they will not renew their leases on stores in Russell Street and Times Square, respectively. Sasa International has previously said it would close up to 30 stores in Hong Kong.

    The network retrenchments follow rapidly declining retail sales in Hong Kong since June last year, especially in the luxury sector, due to ongoing demonstrations and protests in the streets which have spooked foreign visitors, and declining visitor numbers from tier-1 cities in Mainland China. Jewelers have been hit by volatile gold prices as well, sparked by geopolitical tensions and the Sino-US trade war.

    Chow Tai Fook has not specified exactly how many stores it will close, referring to “in the mid-teens” when asked.

    The stores are primarily located in areas popular with tourists, including Tsim Sha Tsui, Mongkok and Causeway Bay.

    Chow Tai Fook believes a trimmer store network will reduce overheads and improve margins after it experienced three consecutive quarters of declining same-store sales. In the three months to December 31, same-store sales fell 35 percent in value in Hong Kong and Macau and by 47 percent in volume.

    However on the mainland, sales rose 17 percent during the quarter, driven by the rapid expansion of the brand’s store network there; it added a net 279 stores. Same-store sales on the mainland rose by 2 percent.

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