Retail Sales In Hongkong Fell For Eight Consecutive Months, And Luxury Brands Were Forced To Close.

It is understood that retail sales in Hongkong have dropped for eight consecutive months. Many luxury brands have stopped expanding or even closed stores. Luxury Burberry has cut its flagship store to close a shop.

In recent years, by the impact of various impacts and the decline of tourists from mainland China, the prosperous Hongkong has been tortured.

We have to stop expanding or even close stores to balance business.

Mariana Kou, a senior consumer industry analyst at CLSA, said: "we can see that this year's promotional information on the market is earlier than before, and the promotion is more extensive, so it also reflects the signal of economic weakness.

It is expected that the US dollar will remain strong, which will be the primary concern, while some of the local residents will travel abroad for shopping.

According to the latest data,

Eight consecutive months of decline, the number of Chinese tourists in October is also declining, the latest month's data fell 4.2% compared to the same period last year.

Many luxury brands have stopped expanding or even closed stores, for example.

The agreement has been reached with Hongkong's Taigu real estate to reduce the size of the flagship store located at Tai Koo square and close the second floor of the flagship store, but it has yet to balance its business.

Many retailers feel the pressure of economic and consumer weakness.

By category, the impact of watches is even more serious.

Mariana Kou explained: "especially watch retailers, in order to get the supply of watch brand owners, they have invested a lot of shops to maintain brand image.

This will make it difficult for them to pfer the shops because they invest a lot of money in the renovation of the store.

In terms of gold location, brands are particularly difficult, and they are waiting for the rent to fall.

According to Joe Lin, executive director of retail services at World Bank real estate services and investment company, the prospects for holidays are not very promising.

Such a downturn is not only reflected in the income of retailers, but also in the profits of shop owners.

Joe Lin said: "in 2015, the rents of the four major retail areas had fallen by 15-20%.

We think the fall will continue next year, but the fall may slow down because the bottom line of the rent has been reduced.

We think it's somewhere between 10-15%. "

The decline in rents will reduce the brand burden, because the average lease duration is about 2-3 years, which allows the brand to make profits in one year or more.

However, the rent adjustment means that the public brand retailers have the opportunity to expand the golden section dominated by luxury brands.