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H&M to close down flagship store in Hong Kong

H&M says hello to yuan and bye to dollar

China Real Time said as retail rents boom in Hong Kong, mass-market fashion retailer H&M says it is closing its flagship location downtown after throwing open its doors just five years ago to considerable fanfare.

The Swedish company opened its first store in China, in Hong Kong’s Central district in 2007. Now the fashion firm said the 30,000 sq.-foot store will close in fall 2013. It will be replaced by Zara, its main competitor.

Cher Chui, an H&M spokesperson, told China Real Time that the company had been unable to reach an agreement with its landlord. Hong Kong is home to the world’s highest retail rents.

“It’s not a big drama,” said Ms. Chui of H&M’s decision to close its flagship shop. “Retail in Hong Kong is so fast and always expanding, so shops do close and then open up elsewhere. This is quite common in Hong Kong”.

Last Updated (Friday, 27 July 2012 12:21)

 

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