Luxury products continue to bear the brunt of an extended retail slump due to falling numbers of visitors to Hong Kong.
Watches and jewelry are among the hardest hit. Their sales declined 17 percent in October from a year earlier.
In response to the worsening business environment, major retailers have switched tactics before the Christmas season.
Tse Sui Leun Jewellery (International) Ltd. (00417.HK) closed some of its stores in prime tourist spots and relocated them to second-tier locations, including shopping malls targeted at the mass market, Wen Wei Pao reported.
It is also setting up pop-up stores offering less expensive products.
Another major brand, Chow Tai Fook Jewellery Group Ltd. (01929.HK) has also opened new outlets selling more-affordable jewelry, including items priced at less than HK$1,000.
Meanwhile, landlords are becoming more accommodating.
Realizing it’s difficult for retailers to make money at the moment, more property owners are willing to slash their rents.
A consolidation of the sector and the downward adjustment of rents is expected to occur in the first half of next year.
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