Business World

Louis Vuitton closes shop in Hong Kong after protests hit demand

Louis Vuitton has decided to shut an a luxury goods brand shop in Hong Kong after continuous protests over the recent months declined sales.

The handbag firm plans to close its store in the Times Square mall, the South China Morning Post newspaper reported.

The firm claims it owns eight shops in Hong Kong. The decision to close the shop came after the company failed to reach an agreement with its landlord to cut the rent in the mall outlet.

High-end fashion labels in Hong Kong have collapsed in Hong Kong since anti-government demonstrations escalated in June, hoping the turmoil would ease in one of the world’s top shopping destinations.

Until now, the luxury brands had only shut stores in Hong Kong temporarily when protests flared.

Hong Kong has long drawn numerous tourists from the Chinese mainland who pick up luxury cosmetics, accessories and clothing at slightly lower prices than at home.

But as the protests dragged on, tourist arrivals have slumped and losses began to trickle through to third-quarter earnings.

Hong Kong’s retail sales fell 23.6% from a year earlier in November, government data showed on Friday, in the tenth consecutive month of declines.

Some brands are weighing up redirecting some of their investments elsewhere, including to the Chinese mainland and other parts of Asia where many have managed to make up for lost sales in Hong Kong.

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