STORES | Staff Reporter, China

Chow Tai Fook's sales grew 2.6% in Q2

SSS of its China business grew 11% during the quarter.

HKEX-listed Chow Tai Fook saw retail sales value (RSV) growth of 2.6% in Q2 FY20-21 amidst improvement in its Mainland China business, the company announced.

Amidst an easing COVID-19 situation in Mainland China, business in the market improved and its same-store sales (SSS) rebounded to a positive growth of 11% during the quarter, the company said.

However, challenging macros and the closure of key border crossings weighed on the retail demand in Hong Kong and Macau. Still, SSS decline in Hong Kong and Macau narrowed to 46.4% and 74.6%, respectively, thanks to a lower base of comparison.

E-commerce and O2O-related RSV in China delivered a 30.2% YoY growth, which the company attributed to its efforts in O2O retailing, whilst volume dipped by 1.2%. Its contribution to the market’s RSV was 5.4% for the quarter.

Meanwhile, the percentage of RSV settled by China UnionPay, Alipay, and WeChat Pay or RMB to the total RSV of Hong Kong and Macau market improved from 9.9% to 13.6% from last quarter.

The group added a net of 261 points of sale (POS) in China during the quarter, including 242 net POS openings of Chow Tai Fook Jewellery, two SOINLOVE POS, 12 Monologue POS, seven ENZO POS, and a net closing of two CTF Watch POS.

On the other hand, one Chow Tai Fook Jewellery POS and one Hearts on Fire POS closed in Hong Kong. The group also closed a net of two Chow Tai Fook Jewellery POS in other markets.

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