Tse Sui Luen Jewellery to open 100 new stores in China
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Hong Kong jewellery retailer Tse Sui Luen (TSL) plans to open 100 stores in China over the next two years after solid growth in its existing store network.
It currently has 380 stores on the mainland, including 193 self-operated stores and 187 franchised shops. As well as planning new sites, TSL says it is focusing less on department stores there and more on malls in line with consumer shopping patterns.
Announcing a 21.3 per cent increase in sales group-wide for the last 13 months, and a 113.2 per cent increase in profit attributable to shareholders, TSL said it was also open to expanding its store network in Hong Kong as suitable opportunities presented themselves.
“Continued expansion of our retail network in all our operating regions is one of our key objectives both now and going forward,” the company said in its results announcement.
“With a cautious approach to monitoring the rental level and identifying appropriate business partners for our franchising business, we were delighted by the healthy growth in our store network in Hong Kong and Mainland China.”
Total sales for the 13 months (the group changed its financial year-end date from February 28 to March 31 this year) were HK$14.137 billion. Profit was $49 million.
In its home market of Hong Kong and Macau, TSL achieved a 19.5 per cent overall increase in same-store sales as tourists from the mainland returned to the territories.
Thanks to gold product promotions and enrichment of the brand’s product assortments, the average amount per sale increased by 20.3 per cent. TSL opened two new stores in Hong Kong, in New Town Plaza in Sha Tin and Yoho Mall in Yuen Long.
“Continued expansion of our retail network in all our operating regions is one of our key objectives both now and going forward,”
Mainland China
TSL says a growing demand for “daily jewellery products” and the continuing emergence of the middle class creates an opportunity to continue to develop its Mainland China business.
“Our self-operated stores continue to play a significant role as the group’s growth engine accounting for 39.3 per cent of the group’s turnover. However, … due to the shift of consumers away from department stores to shopping malls, we are undergoing a transition in the repositioning of our retail network to focus more on shopping malls and less on department stores.”
Despite the change, the company managed to maintain its sales at similar levels to last year and same-store sales growth was 10.4 per cent, (including the effect of an extra month in the figures).
Malaysia
The company also operates four stores in Malaysia, where sales grew 48 per cent. “We remain positive about this business and will continue to expand further in appropriate locations when opportunities present themselves,” the company said.
Questions & Answers
Q.How many new stores does Tse Sui Luen plan to open in China and over what timeframe?
How many new stores does Tse Sui Luen plan to open in China and over what timeframe?
Tse Sui Luen plans to open 100 new stores in China. This expansion is scheduled to take place over the next two years, building on the solid growth seen in its existing network.
Q.What is Tse Sui Luen's strategy for its new store locations in China?
What is Tse Sui Luen's strategy for its new store locations in China?
The company is shifting its focus to open more new sites within shopping malls, moving away from department stores. This strategy aligns with current consumer shopping patterns in the region.
Q.Did Tse Sui Luen see an increase in sales and profit recently?
Did Tse Sui Luen see an increase in sales and profit recently?
Yes, Tse Sui Luen reported a 21.3 per cent increase in sales across the group for the last 13 months. Profit attributable to shareholders saw a significant rise of 113.2 per cent.
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