What: Harvey Nichols is closing one of its 2 locations in HK.

Why it is important: Landmark is no longer the main place to go in HK, and Harvey Nichols wants to focus on Pacific Place, on the other side of the bay. Macro structure of the market has significantly changed in the course of 3 years in HK

Harvey Nichols, a British luxury department store chain owned by Hong Kong's Dickson Concepts, will close its Landmark store in Hong Kong's Central district after the end of this year. According to executive chairman Dickson Poon, the decision was influenced by a change in Chinese tourist behavior, as they are no longer as focused on shopping in Hong Kong as before the pandemic. This trend was noticeable during the Golden Week holidays. With locals also increasingly traveling abroad, there seems to be less need for multiple large-scale department stores in close proximity. The company will now concentrate its efforts on its Pacific Place store to build a local customer base and reduce costs.

Despite weaker consumer sentiment, Dickson Concepts reported a 26.1% increase in revenue to HKD 1 billion (US$128.2 million) for the six months ending September 30, with a net profit increase of 41.5%. Sales in Taiwan and China also saw significant increases. Additionally, Manju Malhotra, CEO of Harvey Nichols, is set to leave her role at the end of the year after a 25-year tenure, with Pearson Poon, executive director of Dickson Concepts, overseeing the business until a new CEO is appointed.

Dickson Concepts to close Harvey Nichols Landmark store in Hong Kong