27-7-2020
Luk Fook’s total same-store sales in first fiscal quarter ended 30 June slumped 71 percent, crippled by the ongoing coronavirus pandemic, with gold products and fixed price jewellery products plunged 67 percent and 77 percent respectively.
Border restrictions brought the same-store sales in Hong Kong and Macau to a 76 percent decline. Consumer sentiment in Mainland and Hong Kong have gradually recovered, however Macau showed no improvement. Fall in sales of China narrowed from 22 percent in April and May to 13 percent in June, while Hong Kong and Macau market declined 60 percent in June.
The jewellery brand’s CEO Wong Wai Sheung said: “It is expected to take time for the Mainland tourist arrival to Hong Kong and for retail atmosphere to recover. The group will net reduce 5 shops in Hong Kong in the coming year, and seek opportunities for opening two more shops in Macau during FY2021. The target for net addition of Lukfook shops in Mainland will be not less than 150 shops, while the target for new brands’ stores in Mainland is 50 shops.”
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