Tag Heuer Hong Kong to close store
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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.
Questions & Answers
Q.Which Tag Heuer store in Hong Kong is slated for closure?
Which Tag Heuer store in Hong Kong is slated for closure?
The Tag Heuer Hong Kong store located on Russell Street in Causeway Bay is the one that is expected to close. The exact timing of the closure is currently uncertain.
Q.What are the primary reasons cited for the decision to close the Tag Heuer store?
What are the primary reasons cited for the decision to close the Tag Heuer store?
Jean-Claude Biver, head of LVMH's watch unit, stated that high rental costs and a significant drop in store traffic are the main reasons for the planned closure of the shop.
Q.How does this closure compare to actions taken by other luxury retailers in Hong Kong?
How does this closure compare to actions taken by other luxury retailers in Hong Kong?
This is the first major closure announced by a global luxury brand, although rival Kering has suggested it might close stores. Local retailers have mainly focused on renegotiating rents.
Q.Are other retailers in Hong Kong also experiencing similar challenges with rental costs?
Are other retailers in Hong Kong also experiencing similar challenges with rental costs?
Yes, local jewellery retailers such as Luk Fook and Chow Tai Fook have been renegotiating their rents and achieving reductions of between 10 and 20 per cent on renewals.
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