H&M refuses rent increase

Swedish retail clothing company H & M Hennes & Mauritz AB will shutter its flagship store in Hong Kong due to an increase in rent.

The 2,800-square-meter store is located in the business district and will be shut down in the next few months. H&M, however, will retain its 11 other branches in Hong Kong.

An H&M spokesman said the company did not ultimately reach an agreement with its landlord over the rise in rent. Retail store rent in Hong Kong is the most expensive in the world. Since 2011, rent has increased by 19% to US$3,864 per square feet per year.

H&M is the second largest global clothing retailer behind Spain-based Inditex, parent company of Zara, which will become the new tenant at H&M’s former location. Zara will pay US$1.4 million monthly for the site, or twice that paid by H&M.