Retail in Asia

In Shops

China slowdown weighs on Hong Kong luxury rents

Rents in what were the world’s most expensive shopping streets have dropped by as much as 40 percent as the impact of China’s slowing economy on Hong Kong’s once-booming luxury goods industry deepens. From Prada to Gucci-owner Kering, companies in the sector are calling on landlords to cut sky-high rents, raising the prospect that store closures will accelerate.

A shop previously occupied by Jaeger-LeCoultre in Causeway Bay is being replaced by a local discount cosmetics retailer that has negotiated a lease about 40 percent cheaper than the deal agreed by the high-end watchmaker in 2012.

Elsewhere in the city – the world’s biggest market for Swiss watches and many other luxury goods – handbag maker Coach has vacated a prime corner store in the business district that is being taken over for less rent by German sportswear group Adidas.

(Source: CNBC)