Tag Heuer Hong Kong to close store
Tag Heuer is to close one of its Hong Kong stores as it battles high rents and falling sales.
Tag Heuer Hong Kong’s Causeway Bay store on Russell St will close soon, according to Jean-Claude Biver, the head of Tag Heuer’s parent LVMH’s watch unit.
While local watch and jewellery retail chains have been adjusting their store networks in the wake of plummeting sales to Chinese tourists over the last 12 months, this is the first significant closure announced by a global luxury player. Rival luxury retail group Kering has hinted it may close some stores, but has not announced firm plans as yet.
However, the Tag Heuer plan itself is vague.
“I am not sure if the shop will be closed this year or next but for sure I want to close it because of high rental costs and a drop in traffic,” Jean-Claude Biver told Reuters.
Local jewellery retailers like Luk Fook and Chow Tai Fook have been renegotiating rents as they come up for renewal, and reporting reductions of between 10 per cent and 20 per cent.