Vision Gallery new venture for gold retailer

vision-gallery-luk-fookGold retailer Luk Fook Jewellery has branched out into eyewear with the launch of its Vision Gallery store in Mongkok.

Its venture follows its announcement last month of a 31.5 per cent slide in same-store sales for the six months ended September compared to the same period a year ago.

Luk Fook is reported to have signed a two-year lease for the 600 sqft (55 sqm) retail space, next to an H&M outlet on Dundas Street, at a monthly rental of HK$128,000 (US$16,489), reports EJinsight. This is half the amount of rent being paid by the previous tenant, bankrupt home-appliance chain DSC.

Luk Fook, which has 47 gold shops in Hong Kong – three fewer than last year – has earmarked HK$20 million to open 10 eyewear stores next year. To boost Christmas sales at the debut outlet, Luk Fook is giving away a pair of pearl earrings to customers.


Luk Fook competitors such as Chow Tai Fook and Tse Sui Luen have also had steep falls in same-store sales this year, up to 30 per cent in some cases. In comparison, eyewear retailer Stelux Holdings has had a sales dip just 5 per cent.

In announcing its latest interim results, Luk Fook said it would be striving to broaden its income sources to help minimise the impact of the business downturn.

Comments

Comment Manually