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

Harvey Nichols, the London-headquartered multibrand luxury retailer, is leaving Landmark, the upscale mall in Hong Kong’s Central after 18 years.

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.

Dickson Poon (left), group executive chairman of Dickson Concepts (International), and executive director Pearson Poon pictured in December 2018. Photo: K. Y. Cheng

The impending closure of Harvey Nichols marks another turn for the worse in Hong Kong’s retail segment, which has seen profound changes following difficulties from mid-2019 to 2022, when the city was rocked by an unprecedented wave of social unrest followed by the coronavirus pandemic.

Landmark was “effectively fully let”, according to mall owner Hongkong Land’s latest financial report released in July. The average rent in the shopping centre was HK$204 per square foot in the first half, according to the same report.

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.

“As part of this, retail and food and beverage outlets within the Central portfolio regularly open and close. This natural process allows us to drive continuous improvements and address the changing needs of shoppers and diners.”

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

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.

In March, Sogo shut the doors of its department store in Tsim Sha Tsui after 18 years, citing the “limited contributions” of mainland tourists to Hong Kong’s retail sales.