Date
30 May 2017
This Emperor Watch & Jewellery shop in Russell Street in Causeway now costs 30 percent less to rent. Photo: HKEJ
This Emperor Watch & Jewellery shop in Russell Street in Causeway now costs 30 percent less to rent. Photo: HKEJ

Landlords slashing retail rents amid souring sales

Hong Kong rents are being slashed 30-40 percent in prime retail locations amid lackluster sales.

These include Russell Street in Causeway Bay where Emperor Watch & Jewellery Ltd. (00887.HK) has renewed its lease on four stores.

The luxury accessories retailer also signed leases on its Tsim Sha Tsui outlets.

Rental rates on these premises have been cut an average of 30 percent, according to the Hong Kong Economic Journal.

Bonjour Holdings Ltd. (00653.HK) took over an Emperor Watch space in Russell Street for HK$1.6 million (US$206,452) a month, a 42 percent discount.

Tsui Wah Holdings Ltd. (01314.HK) managed to reduce its rent on a Tsim Sha Tsui store by 30 percent to HK$203,000 a month.

Meanwhile, Belle International Holdings Ltd. (01880.HK) decided to close all self-branded stores under a company restructuring.

However, it has no plans to quit Hong Kong where it has other brands in operation, an investor relations official said.

[Chinese version中文版]

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