Chow Tai Fook Sales Get Boost from Local Market

RAPAPORT... Retail sales at Hong Kong-based jeweler Chow Tai Fook rose 26% year on year in the second fiscal quarter as strong demand from local consumers outweighed weakness in tourist spending.The mainland China business drove the growth during the three months ending September 30, as did higher-value sales of gold jewelry, according to data the company released last week. Hong Kong sales also increased, with residents going out to shop as Covid-19 restrictions eased.Retail sales jumped 28% on the mainland, which accounts for around 91% of total proceeds. Sales gained 11% in Hong Kong and other markets."Both mainland China and Hong Kong and Macau demonstrated a notable sequential improvement from the previous quarter," the retailer said. "Hong Kong...witnessed encouraging same-store sales growth...thanks to stable local consumer demand."Same-store sales on the mainland gained 3.4%, while Hong Kong and Macau witnessed 9% growth. In Hong Kong alone, same-store sales grew 21% during the quarter, offsetting a 29% decline in Macau caused by tightened social-distancing measures and reduced tourism, the company noted.Meanwhile, same-store sales of gold products - including jewelry - advanced 9% in mainland China and 11% in Hong Kong and Macau, as the falling price of gold encouraged customers to buy more. Same-store sales of gem-set jewelry and similar items dropped 11% on the mainland but increased 6% in Hong Kong and Macau.Image: A Chow Tai Fook sign in Hong Kong. (Shutterstock)