Italian luxury brands ask for rent reduction after Hong Kong protests

Monday, 10 November 2014
The retail landscape in Hong Kong is not above political instability and the recent protest have seen a dive in sales for many luxury retailers as footfall has slowed and less visitors from mainland China are coming to shop. In the wake of the heightened political campaign, Italy's luxury retailers have called for short-term rate cuts on their store rents, according to the president of the Italian Chamber of Commerce.

Luxury brands are suffering with drop in footfall

"Some of our members are suffering," chamber president Fabio De Rosa told scmp.com. He stated the chamber's members in Admiralty and Central had seen a 30-40 percent fall in foot traffic between the end of September and the end of October although the situation had slightly improved in the last week of October.

The chamber has 260 members, including top brands such as Prada, Ferragamo and Gucci. De Rosa said most landlords were not prepared to respond to the request but Hongkong Land was trying to hear tenants' concerns.

Sources said stores in Central and Admiralty suffered a double-digit decline in sales as the Occupy Central movement blocked some roads.

"Hongkong Land has turned down a rent cut request but will provide marketing support to the affected tenants to boost sales," a source said.

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