According to reports in Chinese local media, due to the depression of Hong Kong market, Chow Tai Fook has decided to close some stores in this marketplace.
It is said that Chow Tai Fook's leases for about 40 stores in Hong Kong will due in April 2020 and the jewelry retailer plans to close about 15 of those stores by then. Those stores are mainly located in tourist areas like Causeway Bay, Mong Kok, and Tsim Sha Tsui. Chow Tai Fook has a total of 86 stores in Hong Kong.
Based on Chow Tai Fook's latest report, during the six months period ended December 31, 2019, the company's same store sales in Hong Kong and Macau decreased by 35% year-on-year; meanwhile, its same store sales in mainland China increased by 2% year-on-year.
Chow Tai Fook is not the only victim of the depressed Hong Kong market. Prior to this, Sa Sa International revealed plans to shut down 30 stores in the next 12 months and the stores are also mainly located in Causeway Bay, Mong Kok, and Tsim Sha Tsui.