Luk Fook's same store sales plunged 71% in Q1

They are planning to close five shops in Hong Kong.

Hong Kong-based Luk Fook Holdings’ overall same store sales plummeted 71% YoY in Q1 FY2021, steeper than the 57% fall in Q4 and 10% decline in Q1 FY2020 no thanks to pandemic woes, the company announced in a bourse filing.

Sales for gold products and fixed price jewellery products both plunged 67% and 77%, respectively.

However, as the retail sentiment in Hong Kong and the mainland gradually improved, the overall same store sales decline of the group’s self-operated shops narrowed from 76% in April and May to 58% in June.

On the other hand, as the border restrictions in Hong Kong and Macau have not been fully lifted, sales in the market slipped 76%. In June, the situation in Macau showed no improvement, but the retail sentiment in the Hong Kong market gradually recovered, the company said.

The sales decline in the Mainland market was narrower than the Hong Kong and Macau market, at 40% for self-operated shops and 19% for licensed shops, as most shops resumed operations during the quarter and consumer sentiments recovered gradually

The company has expressed plans to close five shops in Hong Kong in the coming year, as it expects Mainland tourist arrivals to Hong Kong and for the recovery of the retail atmosphere to take time.

Still, they are seeking opportunities for opening two more shops in Macau. In the mainland, they are aiming for a net addition of Lukfook shops to be not less than 150 shops, and for new brands’ stores at 50 shops, most of which will be licensed shops.