Ralph Lauren closes Hong Kong flagship store
today Dec 9, 2016
The store, which covers 20,000 sq ft, housed the brand’s men’s and women’s collections as well as accessories, watches and fine jewellery.
The brand has yet to make an official statement, however the closure is likely to be down to a combination of issues" the prime area’s sky-high rent prices, a downturn in the Hong Kong luxury sector, and the company's own focus on turning around its business.
Other American fashion brands including Forever 21 have announced plans to close their Caseway Bay flagships amid profitability concerns, while Abercrombie & Fitch will be leaving its flagship store in Hong Kong in Q2 2017.
Retail sales in Hong Kong fell again in October for the 20th consecutive month, according to the city’s Census and Statistics Department.
Ralph Lauren’s decision to close its Hong Kong flagship comes as the lifestyle giant announced in June its plans to close more than 50 stores and cut over 1,000 jobs worldwide as it seeks to return to growth.
The label’s revenue for the second quarter declined 8% to $1.8bn, in line with the new Way Forward Plan that is being spreaheaded by CEO by Stefan Larsson. Consolidated net revenue for the full year is expected to fall in double-digits..
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