14th January 2020 – (Hong Kong) Jewellery retailer, Chow Tai Fook Group plans to close 15 shop in Causeway Bay, Mong Kok and TST. The Group spokesman expected that in the next fiscal year (ie, as of the end of March 2021), the lease of more than 40 shops in Hong Kong and Macau will expire.
According to the Group’s official website, as of the end of last year, it operated 91 stores in Hong Kong. In response, the Group said that they regularly review the profitability of stores in Hong Kong and Macao to improve operating efficiency by integrating low-efficiency retail outlets, while actively negotiating rent reductions with landlords. In fact, the company’s interim results as of the end of September 2019, with a turnover of HK$29,533 million, fell 0.6% year-on-year, but the store sales in the Hong Kong and Macao markets fell 27.5% year-on-year.
The three-month operating data as of the end of last year was also announced on last Friday. Store sales in Hong Kong and Macau fell by 35% year-on-year, which was an increase from the interim results, and fell for the third consecutive quarter. At the same time, Chow Tai Fook ’s store sales in the Mainland during the quarter rose 2% year-on-year, with a net increase of 296 newly opened retail outlets, while Hong Kong, Macau and other markets only opened 3 retail outlets. The Hong Kong retail market is bleak this year and hence it is inevitable that companies like Chow Tak Fook would expand into mainland China to offset their loss in reveune in Hong Kong.