Jewelry, Cosmetics, and Luxury Brand Stores Close One After Another Amid Prolonged Hong Kong Protests

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] As the anti-government protests in Hong Kong continue for a long time, jewelry, cosmetics, and luxury brand stores are closing one after another.

According to the South China Morning Post (SCMP) on the 16th, Chow Tai Fook, the world's second-largest jewelry sales chain by market capitalization, has decided to close 15 stores in Hong Kong whose lease contracts expire between April this year and March next year. Most of these stores are located in tourist areas such as Causeway Bay, Mong Kok, and Tsim Sha Tsui. Chow Tai Fook's sales in Hong Kong and Macau fell by 31% year-on-year in the third quarter of last year, and sales decreased by 38% in the fourth quarter as well.

Hong Kong's largest cosmetics chain, Sa Sa, has decided to close 20-25% of its total stores, mainly in areas frequently visited by tourists, over the next 18 months. This is because the number of tourists visiting Hong Kong has sharply declined, causing Sa Sa's sales in Hong Kong and Macau in the fourth quarter of last year to plummet by 35.2% year-on-year.

LVMH, the parent company of the luxury brand Louis Vuitton, has decided to close its store in the famous shopping mall "Times Square" located in the Causeway Bay area due to decreased sales. Prada also plans not to renew the lease contract for its large store in Causeway Bay, Hong Kong's busiest district, when it expires in June this year.

The reason why jewelry, cosmetics, and luxury brand stores are closing one after another in Hong Kong is that the number of tourists has significantly decreased due to the anti-government protests. The number of tourists visiting Hong Kong last year was 55.9 million, a sharp decline of 14.2% compared to the previous year. As a result, Hong Kong's total retail sales decreased by 23.6% year-on-year in November last year. In particular, sales of luxury goods such as jewelry and watches plummeted by 43.5%. However, companies reducing their business in Hong Kong are instead expanding their stores in mainland China.

Chow Tai Fook plans to open 600 new stores in mainland China. Currently, the company operates 3,636 stores in China. The supermarket chain "Best Mart 360" is also expanding its mainland business while reducing its operations in Hong Kong.

This content was produced with the assistance of AI translation services.