Jeweller Chow Tai Fook continues to be battered by the declining number of wealthy Mainland Chinese tourists visiting Hong Kong and Macau.
The Hong Kong listed retailer has revealed its same store quarterly sales slumped 23 per cent in Hong Kong and Macau in the three months to December 31 and by 6 per cent in Mainland China. It said those figures were “similar to the same store sales sales performance” of the preceding quarter.
In total value, after currency effects were taken into account, total sales fell 11 per cent, compared with 10 per cent in the preceding quarter. Mainland sales, on a constant currency basis, were down two per cent.
The group opened a net 31 points of sale during the quarter, including 28 jewellery outlets and two watch stores in Mainland China, and a net one store elsewhere, taking its total point of sale count to 2317 as at December 31.
Meanwhile, Chow Tai Fook MD Kent Wong said on a conference call that the company expects to close five or six stores in Hong Kong during the next three months as it adjusts its network to reflect the changing shopper demographic.
He said the domestic market remained challenging with the local currency pegged to the US dollar which is widening the gap between the Hong Kong dollar and China’s renminbi.