Jeweller Luk Fook to expand stores in HK as rent increases slow

[HONG KONG] Luk Fook Holdings International, the second-largest jeweller in Hong Kong by market value, plans to expand in the city's prime shopping districts as landlords hold back on raising rents.

Landlords are forgoing rent increases or asking for smaller gains when leases come up for renewal, Luk Fook chairman Wong Wai Sheung said in an interview. The company plans to expand in prime locations such as Causeway Bay and Tsim Sha Tsui, where it expects growth in jewellery sales, while closing stores elsewhere, he said last Thursday.

"Usually when we renew leases for stores which we rented three years ago, we would see a big jump in rent," said Mr Wong. "But we've seen the rental increase slow at many stores. Some landlords didn't even ask for more rent."