The French luxury company has planned to close its store in Times Square mall in Causeway Bay shopping district amidst protests in the region.
Louis Vuitton shutters store in Causeway Bay. The French luxury company, owned by LVMH, has planned to close its store in Times Square mall in Causeway Bay shopping district. the company stated the decision comes after the shopping mall owner, Wharf Real Estate Investment Corporation, refused a request to lower its rents, according to South China Morning Post.
Louis Vuitton has eight stores in Hong Kong and it has previously announced it has plans to open a ninth store at Hong Kong International Airport in 2021. The company has moved some of its staff from the region to Mainland China to cope with the low performance of its stores.
Louis Vuitton has been one of the luxury brands affected by the protest that have been taking place in the region for the past seven months. Rival Kering, owner of Gucci, Balenciaga and Saint Laurent, amongst others, dropped its sales by 45%in the region in the last quarter.
Louis Vuitton has moved some of its staff from Hong Kong to Mainland to cope with low performance
In 2018, LVMH’s revenue was 46.8 billion euros. The French luxury holding, owner of brands such as Louis Vuitton or Dior, ended the year with a 10% growth. The benefit, on the other hand, increased by 18%, to 6.4 billion euros.
Causeway Bay still is the most expensive area in the world for retail, according to the annual Main Streets Across the World ranking, by Cushman&Wakefield. “Hong Kong’s Causeway Bay remains the world’s most expensive retail street, however, the Hong Kong retail market has come under growing pressure from local social unrest that has led to a sharp drop in tourist arrivalsand retail sales, as well as interruptions to retailer operations,” explained Kevin Lam, executive director, head of retailservices, Hong Kong at Cushman&Wakefield.