Chow Tai Fook Jewellery Group Ltd. (01929.HK) expects to close more shops after it posted a 6 percent drop in sales for this year’s second quarter, the Hong Kong Economic Journal reported Friday.
Same-store sales in Hong Kong and Macau plunged 24 percent from a year ago, while those in mainland China fell 7 percent, resulting in an overall drop of 15 percent.
The jewelry retailer has stopped opening new stores in Hong Kong and says it may close more stores in the second half if landlords decide not to reduce rents.
The company planned earlier to close four or five stores in the city.
Its target of 150-160 new sales outlets in the mainland each year remains unchanged.
Sales in Hong Kong and Macau slumped 16 percent in the quarter, although those in the mainland remained at the same level as last year.
Managing director Kent Wong Siu-kee said the worst should be over, although the stock market rout may weigh on the retail market.
Rival Chow Sang Sang Holdings International Ltd. (00116.HK) will also take leasing costs into consideration when deciding whether to continue the one-third of its leases that will expire in the second half of this year, Lau Hak-bun, director of Greater China sales operations, said.
Translation by Vey Wong
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