Hong Kong retailers stage unprecedented strike in 14 shopping centres to demand lifeline as foot traffic plunges amid coronavirus outbreak
- Nearly 200 shops operated by 50 brands closed in 14 shopping centres across Hong Kong, as retailers staged an unprecedented strike to ask for rental cuts
- Some of the shops said they would shut for 24 hours, while some posted notices of ‘temporary’ closures without a time limit
Fifty retailers shut their fashion outlets, restaurants and cafes in Hong Kong on Tuesday in an unprecedented strike to demand rental cuts, as plunging foot traffic caused by months of anti-government protests and a coronavirus outbreak threatens to decimate the industry.
Confectioner Lady M, the French sportswear brand Lacoste distributed by Crocodile and Singapore’s fashion brand Club 21 are among nearly 200 shops that have declared a “no business” day across 14 shopping centres in Hong Kong. Some of the shops said they would be shut for 24 hours, while others announced temporary closures without stating a time limit.
“The last seven months of losses have become unbearable for many of us,” said Ashley Micklewright, president and chief executive at Bluebell Group, a distributor of luxury brands including Moschino, Davidoff and Anya Hindmarch. “The impact on the business and traffic is far worse than anything we have ever experienced.”
Commercial real estate leases in Hong Kong are usually made up of two parts: a “base” rent, which is the minimum fixed charge the tenant pays to the landlord, and an additional rent which is usually a percentage of the shop’s sales. The striking retailers are demanding that their landlords waive their base rent during the current crisis, as the city’s economy finds itself in the first technical recession in a decade.