Prada to shut down store in Hong Kong at The Peninsula
Following other major international luxury brands, Prada is reportedly scheduled to close its store in Hong Kong at The Peninsula Hotdel. The Prada store which covers 3,000 square feet is located on the ground floor of The Peninsula. The Italian luxury label is reportedly paying HK$2.4 million in rent each month. Prada currently operates 10 stores in Hong Kong.
Prada embarked on a major international retail expansion after listing on the Hong Kong stock exchange in 2011. It has been hit by China’s economic slowdown and a crackdown on extravagant gift-giving in the country, where it reaps more than one-fifth of its sales.
Ralph Lauren, Paul Smith and Abercrombie & Fitch are among the brand which closed stores in Hong Kong this year. The closures are the latest sign of woes in the country’s retail sector.