The COVID-19 pandemic and ensuing government restrictions on public gathering have continued to wreak havoc on China’s jewelry retail sales.
Chow Tai Fook, the largest jewelry retailer in China with more than 5,900 stores, has noted a significant decrease in sales following the release of its financial report for the third quarter.
Sales declined by 19 percent year-on-year for the period ending December 31, a disappointing outcome following a strong second quarter.
Retail sales decreased by 20 percent in stores located in mainland China, while in Hong Kong and Macau, sales declined by 11 percent.
Same-store sales of gold products (36 per cent decline) were the hardest hit category while gemstone-set jewelery (32 per cent decline) also struggled in mainland locations.
Luke Fook struggles
Hong Kong retailer Luk Fook reported similar issues with same-store sales decreasing by 10 percent in the third quarter.
“Due to the rebound in gold prices and the severe pandemic on the mainland, sales turned from a positive to negative growth, despite a solid retail sales performance and a relatively lower base as compared with the first half of the financial year,” the Luk Fook statement reads.
In contrasting outcomes, same-store sales in Hong Kong increased by 13 per cent while decreasing by 45 per cent in Macau. In mainland China, Luk Fook’s same-store sales declined by 35 percent.
Luk Fook’s total retail sales decreased by 27 percent. Same-store sales of gemstone-set jewelry declined by 38 percent in mainland China as the product category most affected. Same-store sales of gold jewelery declined 33 per cent.
Luk Fook has more than 2,800 points of sale worldwide and plans to open a further 500 stores this year.
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