Hong Kong-based jewellery chain retailer Chow Tai Fook, which has a major footprint in mainland China, reported its unaudited operational data for the quarter ended December 31, 2017. The company reported same store sales (SSS) growth of 5 percent in both mainland China as well as in Hong Kong and Macau.
Same store sales volumes, however, declined 2 percent in mainland China and 4 percent in Hong Kong and Macau. Same store sales for gem-set jewellery grew 22 percent in Hong Kong and Macau, while they declined 1 percent in mainland China. Conversely, gold product SSS grew 8 percent in mainland China while declining 1 percent in Hong Kong and Macau.
The company said that despite the decline in SSS growth of gem-set jewellery in mainland China, same store Average Selling Price (ASP) improved to HK$7,300 ($933) from HK$6,600 ($844) in the third quarter of 2017. In Hong Kong and Macau, the improvement in SSS performance was driven by an increase in both volume and ASP during the quarter. Continuing the momentum in the second quarter, volume recorded a double-digit growth during the quarter. Same store ASP was HK$11,800 ($1,509), up from HK$11,500 ($1,470) in the third quarter of 2017.
The improvement in SSS performance of gold products in both markets was driven by the increase in ASP, which was due to the increase in gold price and average weight per gold product sold.