Retail in Asia

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Coach shrinks Hong Kong presence amid drop in China shoppers

Leather goods maker Coach Inc is shutting one of its three flagship locations in Hong Kong this week, the latest retailer to be hit by the drop in the number of mainland Chinese visitors to the city amid a slowing economy and weaker yuan.

The store towers above Queen’s Road Central in the central business district of a city where high rents and labour costs, as well as slowing sales, have hit other retailers. Coach said the store would close on Aug 31 but said it remained committed to the Hong Kong and China markets.

Earlier this month, Coach said its mainland China sales grew 9 percent year-on-year to USD595 million in fiscal 2015, but growth in Hong Kong and Macau was slower.

(Source: CNBC)