Luxury department store Harvey Nichols is shutting down its Central district store in Hong Kong after almost twenty years of operation. The closure is attributed to declining profitability, as the store’s owner, Dickson Concepts, found it increasingly unsustainable. Opening its doors in 2005, the store, located in a prominent mall, will be vacated in March. It has been revealed that the company was paying as much as US$1.57 million per month for the spacious five-storey location.
Despite this setback, Harvey Nichols will still maintain a presence in Hong Kong through its other store in Pacific Place. Dickson Poon, executive chairman of Dickson Concepts, has observed that Chinese tourists visiting Hong Kong are becoming less interested in shopping. This trend has been further reinforced by weaker spending during the Golden Week holidays in May and October. Moreover, locals are now choosing to travel abroad during festive seasons, eliminating the need for multiple large department stores in close proximity.
Notably, despite the store closure in Hong Kong, Dickson Concepts recorded a significant increase in revenue. During the six months ending September 30, the company reported a 26.1% rise in revenue, amounting to HK$1 billion. Additionally, the net profit attributable to equity shareholders saw a substantial surge of 41.5% to HK$219.7 million. The company also experienced sales growth in other regions, with an 8.5% increase in Taiwan and a remarkable 32% increase in China.
Useful links:
1. Harvey Nichols Store Locations
2. Dickson Concepts Official Website
