Harvey Nichols to close stores in Hong Kong after operating for 20 years
What took place in Hong Kong?
After running it for almost 20 years, the large flagship store of the British luxury department store chain Harvey Nichols in Central Hong Kong will close early in 2019. Situated in a highly esteemed mall in the city, the multi-story 5,574-square-meter hero retail space is accessible via one of the busiest streets in Hong Kong.
The Jing Take
Located in the centre of the affluent Central shopping district of Hong Kong, the store has withstood numerous economic ups and downs over the years, including a pandemic and years of political protests. The establishment, which is owned by Dickson Concepts, plans to vacate its esteemed location by March due to shifts in Hong Kong’s consumer spending patterns.
Even though mainland Chinese tourism to Hong Kong has rebounded, Dickson Poon, executive chairman of Dickson Concepts, identified a notable shift in the behaviour of both Chinese tourists and local patrons, noting a noticeable decline in retail enthusiasm. This shift was especially noticeable in the lacklustre spending during the usually prosperous Golden Week holidays in May and October. Among Dickson Concepts’ more extensive financial disclosures was the closure.
It goes without saying that Hong Kong has some of the most costly residential and commercial real estate globally. The South China Morning Post reports that the company may be paying up to $1.57 million a month for the five-story facility. Large and small brands have long struggled with the exorbitant rents in Hong Kong’s desirable areas.
Poon noted that domestic holiday shopping has declined in an era of easier access to international travel, which has lessened the demand for numerous expansive department stores close to one another.
Meanwhile, as Hong Kong’s retail scene develops, “new gen” retail establishments that fuse entertainment, culture, and food and beverage with shopping are posing a serious threat to established malls and upscale department stores. There are many entertainment and lifestyle events available at K11 Art Mall in Tsim Sha Tsui. In Kai Tak, real estate developer Nan Fung Development has unveiled its 65,000-square-meter lifestyle retail Airside concept complex, while a brand-new enormous play area called Kidzania is scheduled to open soon.
The Jing covers a breaking story and offers our editorial team’s critical assessment of the major ramifications for the luxury market. In this ongoing feature, we examine everything from product discontinuations and mergers to contentious discussions that have emerged on Chinese social media.