Hong Kong re­tail­ers suf­fer from slump in Chi­nese New Year sales

The Pak Banker - - BUSINESS -

HONG KONG: Hong Kong re­tail­ers Chow Tai Fook Jew­ellery Group Ltd. and Sa Sa In­ter­na­tional Hold­ings Ltd. re­ported slump­ing sales over Chi­nese New Year as the num­ber of main­land tourist vis­i­tors tum­bled. Same-store sales over Jan. 25-Feb. 14 was 28 per­cent lower than the new-year pe­riod in 2015, Chow Tai Fook said in a Hong Kong ex­change state­ment on Wed­nes­day, as it warned of a worse per­for­mance in the cur­rent quar­ter com­pared with the pre­vi­ous one. Sa Sa re­ported a 19 per­cent de­cline in sales as the num­ber of trans­ac­tions by Chi­nese tourists sank 18 per­cent, ac­cord­ing to a sep­a­rate state­ment. China's eco­nomic slow­down and cam­paigns against graft and ex­trav­a­gance have hurt lux­ury re­tail­ers in Hong Kong and Ma­cau, as Chi­nese tourists avoided those cities. The num­ber of main­land vis­i­tors to Hong Kong slumped about 16 per­cent from a year ear­lier in Novem­ber and De­cem­ber, cap­ping seven months of de­clines, ac­cord­ing to lat­est fig­ures from the city's tourism board.. Chow Tai Fook's man­age­ment "an­tic­i­pates the retail busi­ness en­vi­ron­ment will con­tinue to be chal­leng­ing for the fourth quar­ter and the sales per­for­mance will be worse than that of the third quar­ter," the com­pany said in its state­ment. The jew­elry re­tailer's fi­nan­cial year ends in March.

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