Topshop quits Hong Kong
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British fashion label Topshop will close its 14,000sqft flagship in Hong Kong when the lease comes up for renewal in October, the latest in a string of mid-level international retailers to exit the territory.
And watch brand Swatch has shuttered its prime Central store, which now has a writ apparently seeking unpaid rent taped to its doors.
In partnership with Lane Crawford, Topshop launched in Hong Kong in 2013, the opening of its Central flagship on the corner of Queens Rd and Pottinger St drawing huge queues. At the time, the company said it was the first step of an expansion program into Mainland China.
The brand opened a further two stores – in Admiralty and Causeway Bay – but these were short-lived as, despite early excitement from consumers, the brand’s local popularity waned.
When the flagship store was opened, Topshop reportedly paid about US$384,000 a month in rent, but when it renewed the lease in 2017, it negotiated a rate of half that.
Topshop will continue to sell online in Hong Kong, despite not retaining a physical store presence.
Meanwhile, Swatch Group has closed its high-profile store in the heart of Central, apparently owing to the landlord overdue rent.
A writ has been posted to the front of the shuttered door filed by Vember Lord Ltd and served six days ago.
Questions & Answers
Q.What led to Topshop's decision to close its Hong Kong flagship store?
What led to Topshop's decision to close its Hong Kong flagship store?
Topshop is closing its 14,000 sq ft flagship store because its lease is due for renewal in October. Despite initial excitement, the brand's local popularity in Hong Kong waned after its launch in 2013.
Q.Will Topshop completely cease operations in Hong Kong after closing its physical store?
Will Topshop completely cease operations in Hong Kong after closing its physical store?
No, Topshop will continue to sell its products online in Hong Kong. The closure only pertains to its physical store presence in the territory, including the flagship and its two other former stores.
Q.What was the previous rental cost for Topshop's Hong Kong flagship store?
What was the previous rental cost for Topshop's Hong Kong flagship store?
When the flagship store first opened, Topshop reportedly paid about US$384,000 per month in rent. This rate was then negotiated down by half when the lease was renewed in 2017.
Q.What is the reason for Swatch closing its store in Central Hong Kong?
What is the reason for Swatch closing its store in Central Hong Kong?
Swatch Group has closed its high-profile store in Central, apparently due to owing overdue rent to the landlord. A writ seeking unpaid rent has been posted on the shuttered door by Vember Lord Ltd.
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