Harvey Nichols to vacate Landmark mall in Hong Kong’s Central after nearly 2 decades amid weak spending by locals, Chinese tourists

The retailer is set to officially close its doors by the end of the financial year in March, after deciding to give up the lease for 60,000 sq ft of space, according to Hong Kong-based owner Dickson Concepts (International)’s latest financial report.

Harvey Nichols will continue to focus on its operations in Pacific Place, another upscale shopping centre in Admiralty, said Dickson Poon, group executive chairman. The Landmark branch opened in 2005 followed by Pacific Place in 2011.

“Consumer sentiment in Hong Kong remains weak” while mainland Chinese tourists in the city are “no longer focused on shopping as they used to be before the pandemic”, he said.

Based on the average rent, Dickson Concepts could be paying as much as HK$12.24 million (US$1.57 million) per month for the space, about 20 times the size of a tennis court.

Retail rents in Central range between HK$170 and HK$200 per square foot, according to listings on JLL’s website.

“Our Central portfolio is one of the most highly sought after retail locations in Hong Kong as evidenced by very limited vacancy over many years and a recovery of tenant sales to pre-pandemic levels,” a Hongkong Land spokesman said.

“We routinely evaluate options to invest in and evolve our Central portfolio ecosystem with the aim of delivering the highest quality experience to tenants, customers and the wider community,” he said.

Plans for the space will be announced in “due course”, he said.

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Hong Kong retailers should create experiences for local shoppers to survive with ‘zero tourists’

Hong Kong retailers should create experiences for local shoppers to survive with ‘zero tourists’

Given the huge space being vacated, which is spread over five floors, and the rent it would entail in Hong Kong’s main business district, it might take some time for the landlord to find a single tenant to replace Harvey Nichols, according to JLL.

“This is an appealing location that is likely to attract tenant interest,” said Oliver Tong, head of retail at JLL in Hong Kong. “However, it would be beneficial for the landlord to consider flexible leasing terms for prospective tenants and divide the space into multiple shops.”

It is a good opportunity for the landlord to revitalise the mall through renovations, infusing it with new energy, he said.

New tenants such as those providing “retailtainment” as well as new restaurant concepts could be tapped to occupy the space, Tong said.