Sa Sa International Holdings (00178.HK), Luk Fook Holdings International (00590.HK) and King Fook Holdings (00280.HK) are shutting underperforming stores as the retailers have suffered from weaker tourist consumption in Hong Kong.
Sa Sa and Luk Fook, which had previously generated huge sales from mainland tourists, have seen their net profits drop over 10 percent in the financial year ended March, while King Fook has seen its losses widen, the Hong Kong Economic Journal noted.
New limits on Hong Kong visits for Shenzhen residents, a stronger Hong Kong dollar and anti-mainlander protests in the territory have dented tourist spending and affected local retailers.
Sa Sa chairman Simon Kwok Siu-ming expects the retail sector to soften further as mainland tourist growth is likely to slow down.
King Fook, meanwhile, sees more headwinds in the luxury segment given changes in mainlanders’ consumption behavior.
The luxury-jewelry and accessories retailer has closed five stores and shrunk some outlets in the past year to control costs.
Sa Sa and Luk Fook are also consolidating their store portfolios, the report said.
Translation by Vey Wong
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