Date
19 January 2017
HMV will seek rental cuts due to the slowdown in Hong Kong's retail sector, says Gilbert Ho. Photo: HKEJ
HMV will seek rental cuts due to the slowdown in Hong Kong's retail sector, says Gilbert Ho. Photo: HKEJ

HMV seeks rent cut amid sluggish retail environment

AID Partners Capital Holdings (08088.HK) will seek rental cut at its HMV flagship store in Central due to the sluggish retail environment in the city.

The company will ask the landlord to adjust the rent lower when the lease comes up for renewal by mid-2016, the Hong Kong Economic Journal reported, citing chief investment officer Gilbert Ho Chi-hang.

The debt-laden retailer, which sells audio CDs, movie DVDs and related products, recently opened another flagship store in Causeway Bay.

According to Ho, the store could break even in a year’s time.

Sales at the new store have surpassed the company’s expectation by 20 to 30 percent over ten days since its opening, the executive said.

Another store in Tsim Sha Tsui is in the planning stage, Ho said.

The company has not set any specific target for new-store openings, he said

In other comments, Ho said the company is maintaining a 20 percent rent-to-sales ratio, and that the retailer’s overall sales are sustaining a single-digit growth rate.

[Chinese version]

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