Chow Sang Sang Holdings International Ltd. (00116.HK) expects lackluster sales during the coming Lunar New Year holidays, but has no plans to engage in a price war to boost revenue.
The company may report a single-digit percentage decline in same-store sales during the period following weak sales during the yuletide season, the Hong Kong Economic Journal reported Friday.
The jeweler is facing enormous operating pressure amid a decline in mainland tourist arrivals. It has already closed two outlets in the tourist district and may have to close more shops.
The company aims to cut overall rent by 20 to 25 percent for a third of its shops that will renew their leases this year.
Meanwhile, Lau Hak-bun, the company’s general manager for Greater China operation, expects the price of gold to fall to about US$1,000 per ounce this year, although it may hover around US$1,050 to US$1,100 in the short run amid tensions in North Korea and the Middle East.
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