TSL Sales Growth Prompts China Expansion

RAPAPORT... Tse Sui Luen (TSL) plans to open 100 stores in mainland China overthe next two years, after witnessing solid growth in the region over the pastfiscal year. The jewelry retailer intends to focus more on shopping-malllocations rather than department stores, it said last week. The move comes afterrevenue increased 21% to $527.2 million (HKD 4.14 billion) in the 13 monthsending March 31 compared with the previous 12 months, while profit more thandoubled to $6.3 million (HKD 49.5 million) from $3 million (HKD 23.2 million). The Hong Kong-based retailer recently adjusted its fiscalyear to match the traditional retail cycle. As a result, its most recent annualincome statement covered a 13-month period instead of 12 months. "Continued expansion of our retail network in all ouroperating regions is one of our key objectives both now and going forward," thecompany said. "We were delighted by the healthy growth in our store network inHong Kong and mainland China during the period." Sales in Hong Kong and Macau grew 18% to $195.1 million (HKD1.53 billion) during the 13 months amid an increase in tourist traffic and growthfrom local consumers. Revenue in mainland China climbed 23% to $324.2 million (HKD2.54 billion). The group had 193 self-operated stores and 187 franchised storesin China at the end of March. Sales from other countries jumped 47% to $7.9 million (HKD62 million) for the year. Stability in Hong Kong's retail market and politicalsituation, combined with resurgent tourism from mainland China, indicates apositive outlook for the next fiscal year, TSL noted. The number of touristsvisiting Hong Kong from mainland China increased 4% to 44.4 million in 2017,according to data from the Hong Kong Tourism Board. Image: Mangongchong