Date
27 July 2017
Jewelry retailer Luk Fook has suffered due to a decline in mainland visitors in Hong Kong. Photo: Bloomberg
Jewelry retailer Luk Fook has suffered due to a decline in mainland visitors in Hong Kong. Photo: Bloomberg

Lackluster retail environment takes further toll on Luk Fook

Luk Fook Holdings (International) Ltd. (00590.HK) has seen its same-store sales slide for the ninth consecutive month, leading to a 27 percent decline in such sales for the quarter ended March, the Hong Kong Economic Journal reported.

Same-store sales in Hong Kong and Macau fell 28 percent, representing the worst showing in three quarters, while the China market suffered a 19 percent drop in same-store sales.

The latest data came as Hong Kong marked the first anniversary of implementation of stricter entry rules on mainland Chinese visitors into the city.

Under the new rules, Shenzhen permanent residents are allowed only one visit a week to Hong Kong using their multiple-entry permits.

The measure, which was aimed at curbing parallel traders, resulted in a 20 percent drop in the number of visitors from the mainland, according to the Hong Kong Tourism Association.

The number of tour groups from China also slid, falling about 60 percent from a year ago to 11,000 groups in the first quarter this year.

The tourism association called on the government to seek eased entry for people living in first and second-tier cities in the central and northern parts of China.

That can help balance the two issues of parallel trading and mainland visitor numbers, it said.

[Chinese version中文版]

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