A jump in rent is forcing Australia’s Dymocks to close its flagship bookstore in Hong Kong, Apple Daily reported Monday.
Dymocks is paying HK$570,000 in monthly rent for the 4,000 square meter space on the third floor of the International Finance Center mall in Central.
But French luxury apparel brand Agnès b. has offered a 35 percent higher rent for the space when the lease runs out next month.
Mall owners usually prefer tenants, such as luxury goods retailers, that can generate a higher daily turnover, the report quoted a property industry insider as saying.
Dymocks’ IFC store will close at the end of this month and is now offering a 30 percent discount on its merchandise, the newspaper said.
The South China Morning Post, published by the SCMP Group, one of Dymocks’ shareholders, reported that the Australian bookstore operator will withdraw from the Hong Kong market at the end of February.
Dymocks entered the city in 1999 and had 10 stores in its prime. Some have closed because of rising rents.
After the IFC store closes, only five Dymocks bookstores will remain, but they are expected to operate independently under different names, the report said.
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