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.