Valentino shuts store on Hong Kong’s Canton Road amid retail slump, the latest luxury retailer to reduce its presence in city
- Italian fashion brand says it is closing its Harbour City store because lease has expired, days after Tiffany & Co confirmed it had shut its Canton Road shop
- Canton Road has been one of the most important retail locations for world’s luxury brands, but recent street protests, and coronavirus, have seen sales plunge
Canton Road, along with Russell Street in the neighbourhood of Causeway Bay, was until recently one of the world’s most important locations for luxury brands worldwide.
The retail strip is one of the main commercial arteries in Tsim Sha Tsui at the tip of the Kowloon peninsula, and has long attracted wealthy shoppers from China who, until recently, were lining up outside the boutiques of luxury giants such as Hermès, Chanel and Gucci. The Italian luxury brand announced the closure on Monday.
Retailers are now struggling even more amid the coronavirus outbreak, which has kept travellers away from Hong Kong and caused the government to implement measures such as banning gatherings of more than four people.
Last week the Hong Kong government reported a record drop in retail sales of 44 per cent year on year in February, to HK$22.7 billion (US$2.93 billion). The luxury sector was particularly affected, with sales of jewellery, watches, clocks and valuable gifts down 58.6 per cent in January and February compared to the same period last year.
The Valentino store is part of the formerly thriving Harbour City mall, owned by Wharf Real Estate Investment Corporation (Wharf Reic), which last month agreed to a 50 per cent rent reduction for some tenants in the mall.
The Post has subsequently learned that Louis Vuitton has been in talks with Wharf Reic to negotiate a rental reduction of up to 40 per cent for the Times Square store.
Following the closure of its Canton Road store, Valentino will have six retail outlets in Hong Kong.