Fashion brand Coach has shuttered one of its two Hong Kong flagships in a surprise move, just days after it opened a new showcase across the harbour.
The high profile store on Queen’s Rd, Central, closed its doors on Monday.
Just last month, Coach opened a new flagship on Canton Rd in Kowloon apparently giving it anchors on either side of the harbour.
But the company has since indicated it closed the Central store due to falling sales to Mainland Chinese, who are now travelling to alternative locations such as South Korea, Japan and Europe to buy their luxury goods.
Coach previously reported that its Mainland China sales rose nine per cent year on year to US$595 million in the 2015 financial year.
“Sales growth in China was driven entirely by the mainland, as Hong Kong and Macau continued to experience traffic declines from a decrease in PRC tourists,” CEO Victor Luis said during an analysts’ call early last month.
The company predicts sales growth in China will reach five per cent this current financial year.
Source: insideretail.asia
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