Chow Tai Fook Jewellery Group Ltd, China’s largest jewelry retailer by market value, expects to close 5-6 Hong Kong stores in the fiscal year ending in March, as tourists are put off visiting the city by a strong local currency.
Managing Director Kent Wong said on Friday the company would negotiate for lower rents when it renews leases and would see more store closures unless rents were cut in the city’s key tourist areas including in Causeway Bay and Tsimshatsui.
Luxury retailers are feeling the heat from fewer mainland visitors. In August, Coach Inc closed its flagship store in Hong Kong and last month Italy’s Prada SpA reported a 38 percent fall in August-October profit.
(Source: Jakarta Globe )