Chow Tai Fook Jewellery Group Ltd. (01929.HK), the world’s largest jewelry retailer by market value, will expand its business through organic growth rather than by acquiring other companies, chairman Henry Cheng said Tuesday.
“We would prefer to open our own stores rather than buy them from others, so we can better manage them,” Cheng said. “If we acquire too many new stores at once, we may not be able to handle them.”
The company will focus on lower-tier cities where its penetration rate is low. It will adopt a more flexible approach to franchised stores which accounted for 32 percent of its 1,844 sales points as of Sept. 30.
Meanwhile, Luk Fook Holdings International Ltd. (00590.HK) plans to acquire 3D-GOLD, which owns 416 sales points in Hong Kong, Macau and mainland China, from Hong Kong Resources Holdings Co. Ltd. (02882.HK) for HK$301 million (US$38.59 million), according to a stock exchange filing on Nov. 5.
– Contact HKEJ at [email protected]