Watsons closes shop in Tsim Sha Tsui after 20 years in latest sign of Hong Kong retail sector’s struggle to survive coronavirus pandemic

The personal health care chain is shutting its store in one of Hong Kong’s major shopping destinations citing the sharp drop in international visitors

Retailers that rely heavily on mainland Chinese and other tourists for sales found themselves struggling after the city essentially closed its borders early last year

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Watsons is giving up its shop at Star House, TST, after leasing it for 20 years. Photo: Shutterstock

Published: 6:07pm, 13 Oct 2021Updated: 10:54pm, 13 Oct 2021

Personal health care chain Watsons said it will close its shop in one of Hong Kong’s major tourist locations on Thursday after leasing it for two decades, a sign of the retail industry’s struggle to survive a near-total absence of visitors during the pandemic.

Watsons, owned by tycoon Li Ka-shing’s CK Hutchison Holdings, said the closure of its large store at Star House in Tsim Sha Tsui, a popular shopping destination, was because the pandemic had “severely affected the local economy and customers’ lifestyles”.

“The number of tourists visiting Hong Kong saw a drastic drop of over 90 per cent. Our business is affected, especially the stores in tourist areas with high rental costs,” said Watsons Hong Kong in a written reply to the Post on Wednesday.

Watsons paid more than HK$1.5 million a month for the 4,200 square-foot space, according to sources.

“Now the landlord has cut the asking rent by 46 per cent to HK$800,000 a month as it offers the space on the market,” said one source, who did not wish to be identified.