Golden sales for Luk Fook’s first quarter

Same-store sales of gold products have restored growth, jewellery retailer Luk Fook says in announcing the performance of its self-run retail shops for the first quarter, to the end of June.

It says a relatively low base and “an effective strategy of an enhanced offering of good-value-for-money gold products” helped boost SSSG 5 per cent, a progression over the previous quarter.

SSSG of 32 per cent in China and 10 per cent in Hong Kong/Macau for gold and gemset jewellery led to 23 per cent growth overall for the period, a significant improvement over the previous quarter.

On the other hand, the SSSG of gemset jewellery products in the Hong Kong/Macau market rose 9 per cent while gold products stayed flat, a turnaround from a declining trend for more than a year. This resulted in a 3 per cent improvement in the market overall.

While the group closed two shops in Hong Kong during the quarter, the number of shops in Hong Kong and Macau for the whole year is expected to be about the same. During the period, 14 Luk Fook shops were added on the mainland, five of these licensed outlets.

As at the end of last month, the group had a total 206 self-run shops – 142 in China, 45 in Hong Kong, 10 in Macau and nine overseas. There were also 1301 licensed shops in China and one in Korea, making a total of 1508 outlets worldwide, of which 1443 were on the mainland.