Luk Fook Holdings (International) Ltd aims to open over 500 stores in mainland China this fiscal year. 

Citing the expansion of its retail network, the relaxation of lockdown measures on the mainland and the government’s initiatives to boost consumption, the group is targeting double-digit growth in revenue this fiscal year and setting its sights on record-high profits in three years. 

“As the mainland government continuously launches measures to stabilise economic growth, with a particular focus on policies to promote consumption and investment growth, the Group remains optimistic about the mid- to long-term business prospects. Accordingly, the Group will still focus its expansion in the mainland market, particularly the markets in fourth-and fifth-tier cities,” Lukfook said.

As of March 31, 2022, the group operated the Lukfook brand and four sub-brands or product lines, namely Goldstyle, Dear Q, Lukfook Joaillerie and Heirloom Fortune. It had 2,809 stores around the world, including 2,719 Lukfook shops. 

This fiscal year, the retailer is targeting 500 new Lukfook stores in mainland China. These will be mostly licensed shops in fourth- and fifth-tier cities. It also plans to open nearly 50 stores of its other brands, again mainly licensed shops. As of end-March 2022, Lukfook had 2,736 stores in mainland China.

E-commerce is another priority. Lukfook is eyeing a 20 per cent increase in online sales this year by establishing its own e-commerce platform and working closely with third-party sites on the mainland. 

In the fiscal year ended March 31, 2022, Lukfook recorded a 32.5 per cent year-on-year increase in revenue to approximately HK$11.7 billion (around US$1.49 billion). The growth was largely attributed to the low base effect, positive retail activity and favourable gold sales.

The group’s same-store sales fell in March and April 2022 due to the resurgence of the pandemic in Hong Kong and mainland China in the first two months of the year. Improving pandemic control and a new round of consumption vouchers helped Hong Kong sales rebound since April 2022. 

Same-store sales in Hong Kong and Macau rose slightly from April 1 to June 21, while overall same-store sales at both self-operated and licensed shops in mainland China decreased by around 15 per cent during the same period. May saw overall same-store sales increase once again.