The current trend of Chinese tourists in Hong Kong shifting their focus away from shopping was among other factors that have contributed to Dickson Concepts’ decision to shutter luxury department store Harvey Nichols at the Landmark and terminate its longstanding lease with landlord Hongkong Land after the conclusion of the current financial year, according to a financial report released by the group.
Alongside the remarkable growth of e-commerce and the rapid expansion of major luxury brands in China, Dickson Concepts points out the price differences between China and Hong Kong have narrowed.
Chinese tourists, despite the reopening of borders in February, are no longer as focused on shopping as they were before the pandemic, a shift in behaviour that the group says reflected in weaker-than-anticipated retail spending during crucial Golden Week holidays in May and October. In addition, the increasing trend of locals travelling overseas during holiday seasons has diminished the necessity of operating multiple large-scale department stores in close proximity.
Harvey Nichols’ current occupancies at Landmark in Central and at Pacific Place, managed by Swire Properties, in Admiralty are less than three kilometres apart.
The department store opened at Landmark in 2005 and retained a 60,000-square-foot space across five storeys since.
At the end of its fiscal year, Dickson Concepts says Harvey Nichols’ activities will be concentrated in its Pacific Place store, which offers a comprehensive range of product categories, including cosmetics, apparel, footwear and leather goods.
“We believe that this strategic decision will enable us to consolidate and further build our local customer base at Pacific Place while significantly reducing our cost base which should have an even greater positive impact to our bottom line,” said chairman Dickson Poon.