Luxury brand and other high-ticket retailers in Hong Kong suffering from slower sales, and paying among the highest retail rents in the world, are shutting down some of their outlets. Jewelry retailer Chow Tai Fook Jewellery Group Ltd., Burberry Group Plc, and Kering SA are pushing landlords to lower rents on existing properties as luxury brands scale back. TAG Heuer closed its store in Russell Street last week due to high rent and falling sales.
Luxury retail sales have dropped as a result of China’s economic slowdown and President Xi Jinping’s austerity and anti-corruption campaigns. In addition, a weaker yen and euro are persuading many Chinese tourists to favor Japan and France over Hong Kong.