Drop in Chinese New Year Sales Hits Hong Kong Stores

Finance and Trade
18/02/2016 09:06

Hong Kong retailers including Chow Tai Fook Jewellery Group Ltd. reported plunging sales over the critical Chinese New Year period as the number of tourist visitors from Mainland China fell. Same-store sales over the January 25-February 14 period plunged 28 percent on the 2015 new-year period, Chow Tai Fook said in a Hong Kong exchange statement on Wednesday. The jewelry retailer also warned of a worse performance in the current quarter compared with the previous one. Chow Tai Fook’s “anticipates the retail business environment will continue to be challenging for the fourth quarter and the sales performance will be worse than that of the third quarter.” The jewelry retailer’s financial year ends in March.

The financial slowdown in China, as well as the government's ongoing campaign against graft and extravagance, have hit luxury retailers in Hong Kong and Macau as Chinese tourists have avoided visiting them. Meanwhile, he number of mainland visitors to Hong Kong slumped about 16 percent from a year earlier in November and December, capping seven months of declines, according to latest figures from the city’s tourism board, Bloomberg reports.