5th July 2022 – (Hong Kong) The retail market in tourist areas continues to suffer as the government has not made any announcement with regards to border reopening. Several big brands have pulled out from Canton Road in Tsim Sha Tsui in recent months. Chow Sang Sang and Burberry, a British luxury fashion brand have terminated their leases respectively at Silvercord Tower near the junction of Canton Road and Haiphong Road. The monthly rent of the two shops during peak period was around HK$6 million and HK$7 million respectively. As a result, the mall lost two major tenants and is expected to lose more than HK$10 million in rental income per month.
According to market sources, Chow Sang Sang which occupied G38F, G/F and 1/F of Silvercord Tower with ground floor area of 5,300 square feet, and the first floor area of 2,500 square feet will not renew its lease by end of July. In fact, the tenant has already vacated the premises in June and the hoarding and demolition works have been carried out. It is understood that Chow Sang Sang began to lease the premises as early as 2005. At first, only the ground shop was rented, and the monthly rent was about HK$600,000. Later, it was expanded to the first floor. The monthly rent recently was still as high as HK$7 million. The units are owned by China Resources. Although the demolition work has been carried out, the owner has yet to find a prospective tenant. After the closure of the above flagship store, Chow Sang Sang still has many branches in Tsim Sha Tsui, including iSQUARE (facing Nathan Road), Harbour City, K11 MUSEA and THE ONE shopping malls.
In addition, Burberry, a high-end British fashion label, has also moved out of the shop lot on the ground floor of Silvercord Tower in recent months. It occupied units G4 and G5 on the ground floor, 104-106 on the first floor, and 207-209 on the second floor, located on at the junction of Canton Road and Haiphong Road with a total area of about 10,140 square feet. The shop was closed in the first quarter of this year before it was handed over to the landlord in June. This duplex giant shop is owned by China Real Estate (0127) and has been rented by Burberry since 2011. The monthly rent in 2014 peaked at HK$6.5 million. It is known that the monthly rent of the shop has been reduced from a high level to about HK$4.5 million, a decrease of more than 30%. In recent years, Burberry has successively abandoned many important strongholds in the core tourist area, and it did not renew the lease of its flagship store of more than 5,000 square feet on Russell Street, Causeway Bay in February this year. The space has since been taken over by “Transformers” themed restaurant.
As for the Swedish fashion brand H&M, which is also located on the ground floor of Silvercord Tower, it was earlier reported in May this year that it had given up its lease renewal of the two floors with a total area of about 20,000 square feet. At that time, many shelves in the store had been emptied. However, a few days after the news leaked, H&M suddenly renewed the lease for one year, temporarily maintaining business.
Nevertheless, major brands have successively pulled out from Canton Road in the past two years. For example, the cosmetics chain Sa Sa (0178) also reported that it had not renewed its lease at 68-80 Canton Road, with an area of approximately 1,940 square feet.
Canton Road has always been a major attraction for tourists. Local customers rarely go to Canton Road to shop. Hence, it is difficult for businesses to survive without border reopening.