Chow Tai Fook China Expansion Spurs Growth

RAPAPORT… Chow Tai Fook reported a sharp rise in gem-set-jewelry sales in Hong Kong, while expansion in mainland China helped drive growth in its fiscal third quarter, as the local retail
sector continued to improve.

Overal retail sales grew 12% in the mainland and were flat in Hong Kong, the company reported Tuesday. However, same-store sales at branches open for at least one year increase 5% in both regions. 

The company has accelerated its expansion program recently after exerting greater caution during the region’s downturn in 2015 and 2016. It opened a net 77 stores during the three months that ended December 31, of which 74 were in China and three in Hong Kong. 

Same-store sales for gem-set jewelry leapt 22% in Hong Kong and Macau
in the quarter, while the measure for gold products there fell 1%. In mainland China, same-store sales of gem-set jewelry slipped 1%, but gold grew 8%. 

Last week, Hong Kong’s Census and Statistics Department
noted an 8% increase in sales of jewelry, watches and other valuable items in
November, as consumer sentiment improved.

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