US clothing retailer Gap to close some Hong Kong stores after sales sink due to coronavirus-induced slowdown
- US retailer will close five out of its eight stores in the next few weeks
- Move comes soon after Victoria’s Secret shut its flagship store
The retailer will close its stores at Albion Plaza in Tsim Sha Tsui, Hysan Place in Causeway Bay, Festival Walk in Kowloon Tong, and two outlets at shopping mall K11 in Tsim Sha Tsui, in July and August, Gap said in a written reply to the Post on Friday.
“After evaluation against our strategic priorities in Greater China, we have made the difficult decision to close our stores,” Gap said. “We see the need and greater value in prioritising and focusing our resources at this time. This is a pure business decision that has nothing to do with anything else.”
The company has not given up on Hong Kong completely as it plans to keep its stores in Queen’s Road in Central, V city in Tuen Mun and Citygate mall in Tung Chung open.
“Hong Kong’s retail and tourism industry is unlikely to fully recover this year,” said Thomas Lam, executive director at Knight Frank. “Brands with many shops in expensive locations will consider closing some of their stores especially when sales have nosedived.”
He said that this was most likely a strategic move as most international brands will gradually shift to online sales.