LVMH's Tag Heuer says to close shop in Hong Kong

LVMH's biggest watch brand, Tag Heuer, is planning to close one of its directly operated shops in Hong Kong due to the high rent and lower sales, the head of the luxury group's watch unit said on Monday.

"I am not sure if the shop will be closed this year or next but for sure I want to close it because of high rental costs and a drop in traffic," Jean-Claude Biver told Reuters on Monday.

LVMH is one of several luxury groups including Gucci-owner Kering which said last week they were trying to renegotiate rents and mulling closures after losing business among Chinese tourists who, partly for currency reasons, prefer to shop in Europe or Japan.

The Tag Heuer shop is located on Causeway Bay's Russell Street, which in 2013 was one of the most expensive luxury strips in the world.

Many shop owners in Hong Kong have had to cut rents to retain top clients such as luxury brands whose presence is essential to preserve an area's prestige and attractiveness.