Harvey Nichols Hong Kong to shutter Landmark store

What Happened: British luxury department store chain Harvey Nichols is to shut its big flagship store at the Landmark in Hong Kong’s Central early next year after operating it for nearly 20 years. The multi-storey 5,574-square-meter hero retail space is located on one of Hong Kong’s busiest streets and in one of the city’s most prestigious malls. The Jing Take: Being in the heart of Hong Kong’s affluent Central shopping district since 2005, the store has weathered many shifting economic tides over the years brought on by years of political protests and then a pandemic. Owned by Dickson Concepts, the establishment is set to depart its prestigious location by March, amid a changing landscape of consumer spending in Hong Kong. Dickson Poon, executive chairman of Dickson Concepts, pointed to a significant shift in the behavior of Chinese tourists and local patrons alike, noting a discernible decline in retail enthusiasm, despite the mainland Chinese tourism rebound in Hong Kong. This change was particularly evident in the form of lukewarm spending across the traditionally robust Golden Week holidays in May and October. The closure was divulged among Dickson Concepts’ broader financial disclosures. It’s no secret that Hong Kong is home to some of the most expensive real estate in the world, both commercial and residential. According to the South China Morning Post, the corporation might be paying as much as $1.57 million per month for the five-story space. Brands, both big and small have for decades struggled with the sky high rents in Hong Kong’s prime locations. In an era when global travel has become more accessible, Poon observed that shopping domestically during festive seasons has waned, reducing the need for multiple large-scale department stores in proximity to one another. Meanwhile, as Hong Kong’s retail landscape continues to transform, traditional malls and luxury department stores face stiff competition from “new gen” retailing spaces that combine entertainment, culture and F&B with shopping. K11 Art Mall in Tsim Sha Tsui offers a slew of lifestyle events and entertainment options. A new giant play arena, dubbed Kidzania, is opening there soon, and in Kai Tak, property developer Nan Fung Development has launched its 65,000-square-meter lifestyle retail Airside concept complex. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

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Harvey Nichols Hong Kong to shutter Landmark store