A jewellery display window in Hong Kong
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Hong Kong jewellery retailers continued to witness sales recovery in China compared to other major markets amid ongoing virus-led border restrictions and a slowdown in tourism.
Chow Tai Fook Jewellery Group Ltd’s overall sales in China were up 21.2 per cent in the quarter ending September 30, compared to a 51.6 per cent slump in Hong Kong and Macau.
Same-store sales in China also grew by 11.2 per cent during the period in review while those in Hong Kong and Macau fell 52.5 per cent due to a challenging macroenvironment and continued travel restrictions.
E-commerce and O2O-related sales in China also showed promise, with a growth of 30.2 per cent.
Luk Fook Holdings (International) Ltd meanwhile reported a 55 per cent drop in same-store sales in the second quarter of its fiscal year ending March 31, 2021.
The decline in overall sales of self-operated shops however has since narrowed from 60 per cent in July and August to about 40 per cent in September as retail sentiment continued to recover.
Total sales in China also regained momentum from a decrease of 14 per cent in the previous quarter to a low single-digit increase, with diamond products registering a double-digit growth, revealed the company.
Same-store sales in Hong Kong and Macau during the quarter were down 63 per cent year on year, compared to a 15 per cent and 4 per cent dip recorded by self-operated and licensed shops in China, respectively. Around 96 per cent of its stores in China are licensed shops, according to Lukfook.