HONG KONG — And another one bites the dust.
The spokeswoman said the Italian brand, which is dual-listed in Hong Kong and Milan, was moving out but said the hotel had not confirmed who the next tenant could be. She declined to comment on whether more retailers in its shopping arcade had plans to vacate as lease negotiations are ongoing, but more closures across the city are expected for another two years as brands scale back to compensate for sharply reduced mainland Chinese tourist flows. Prada currently operates 10 stores in Hong Kong.
Hong Kong retail sales this year are expected to fall 7 percent although the decline is decelerating. A weak greater China market performance dragged down Prada’s first-half profits, which slumped 25 percent.
Back in August, Prada ceo Patrizio Bertelli mentioned that the brand’s “retail network is currently subject to rigorous review including closure of non-strategic locations and selective openings in high potential markets.”
Prada renovated its Canton Road store in July just a stone’s throw away from the Peninsula arcade store and opened four stores in Macau this summer: two inside the City of Dreams casino complex in July and two more inside Wynn Palace in August.
Bertelli also said the company was focusing on building its e-commerce platform with the priority on China, Hong Kong and Singapore.