Chow Tai Fook closes 40 stores after sales slump

Hong Kong-based jewelry group Chow Tai Fook has closed 40 stores in Hong Kong after experiencing a 60-per-cent drop in retail sales there amidst the coronavirus outbreak.

Sales on the mainland fell 42 percent, according to an update on trading for the first two months of this year.

“In response to the measures of local governments in containing the spread of COVID-19 virus, the majority of our point of sale in Mainland China were temporarily closed since late January, and in Hong Kong and Macau from early February,” read the update.

“Businesses in both markets were inevitably affected during the period. As of February 29, approximately 70 percent of our points of sale in Mainland China and 64 percent in Hong Kong and Macau had resumed operations.”

The company said the interest of public health and the safety of its staff remained of utmost importance to the group despite its heavy loss of business.

Operations at the Chow Tai Fook’s production facilities in Shunde and Shenzhen have resumed operations gradually. Its inventory remains higher than usual in the short term due to a boost in production for the Chinese New Year period of items that now remain unsold.