Hong Kong’s Chow Tai Fook, world’s second-largest jewellery retailer, kicks off mainland China expansion with acquisition of gems maker Enzo
- Acquisition follows announcement on Tuesday that CTF will not renew leases of as many as 15 Hong Kong stores
- Luxury natural coloured gems maker Enzo Jewelry operates 60 stores in China
Louis Vuitton paid HK$5 million in monthly rent before decision to shut boutique
Emperor said it was open to adjusting rents upon renewal. It had offered rent cuts ranging from one month to half-yearly arrangements, Alex Yeung, its executive director, said on Friday. “We are in close communication with our tenants, if they need short-term measures to ease the pressure they face in the retail environment. So far, our commercial retail occupancy rate is still above 90 per cent,” he said.
Meanwhile, leasing demand is expected to be limited in 2020, as the global and local economies remain shrouded in uncertainty, said Cathie Chung, senior director of research at international property consultancy JLL.
“Vacancies on prime high streets in the core market stood at 9.0 per cent in the fourth quarter of 2019, compared with 4.8 per cent a year ago. Vacancy levels are expected to rise even more, once the seasonal trade tenants start to leave following Lunar New Year,” Chung said.
China’s millennials and Gen Z help luxury retailers defy slow economic growth
Retail has been hurt across sectors by the recession and anti-government protests. I.T. Limited, a Hong Kong-listed fashion retailer, saw its same-store sales growth in Hong Kong and Macau drop by 33.3 per cent in the three months ending on November 30, according to an exchange filing on Friday.
“Our Hong Kong and Macau businesses were adversely impacted by the recent social instability, and the associated decrease in inbound tourist traffic, as evidenced by the same-store sales growth decline in the segment,” the company said.
Leather goods and third-party vendor Bauhaus posted a net loss of HK$339.2 million for the six months ending on December 31 2019, after its in-store sales in Hong Kong and Macau fell by 20 per cent, according to the company’s exchange filing on January 9.