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)