Is it true? Will we start to see fewer luxury stores lining the streets of Hong Kong?
Kering – the parent company of luxury brands such as Gucci, Yves Saint Laurent, Bottega Veneta, Alexander McQueen and Balenciaga, to name a few – might consider closing some Hong Kong stores due to poor sales if it can’t negotiate with its landlords, said their CFO.
“Many landlords still don’t understand that the market has changed,” he said, reports Apple Daily.
As mainland visitors start shunning Hong Kong and instead turn to other places in Europe and Asia, luxury sales in the city have declined, making it harder for luxury stores to afford their rents.
Last week, Burberry said it would try to negotiate with its landlords to reduce its rents as its Hong Kong sales have also plummeted.
Photo: Simon A via Flickr
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