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Ambrose Li

A home furnishing store group and a 70-year-old musical instrument chain have closed two stores each and one of the retailers said a trend towards shopping across the border and overseas had hit sales.
Pricerite, which also sells electrical appliances, has shut its Kennedy Town and North Point branches, leaving it with only one shop on Hong Kong Island and 13 across the city.
Tom Lee Music has also closed two shops, one in Kennedy Town and the other at Olympian City in West Kowloon.
Pricerite told the Post on Saturday that it reviewed its development strategy for branches on a regular basis to boost the online-to-offline customer experience.
“Consumer confidence is seriously affected by the weak economy at the moment. Coupled with the new norm of Hongkongers heading northwards to spend and frequently travelling overseas, local retail sales took a hit,” the company said.
“Rent is an important topic for retailers. We would balance our profits, costs, as well as market changes to open or close branches and adjust our strategies.”
Tom Lee Music, which has 19 shops left in Hong Kong after the closures, last month posted on its Facebook account an advertisement for an “ultimate countdown discount” at the two axed stores.
The firm offered an extra 5 per cent off pianos and digital keyboards on display, as well as some guitar-related products, in addition to a previously announced clearance sale.

Simon Lee Siu-po, an honorary fellow at the Chinese University of Hong Kong’s Asia-Pacific Institute of Business, said the availability of online – and often cheaper – alternatives, as well as the recent emigration wave could have contributed to the closures.
“Some customers might be shopping on Taobao or other channels,” he said.
“For furniture shops in Hong Kong, it’s most likely they would order from the mainland anyway, so people might do that directly.
“There are alternatives, which would be a hit to Pricerite.”
“What’s worse is that, when they have such a big showroom in Hong Kong, customers would shop on the mainland for similar products having perused their furniture,” Lee said.
He added that high rental costs did not help Hong Kong-based retailers.
E-commerce platform Taobao is part of the mainland China-based Alibaba Group, which also owns the South China Morning Post.
Lee said any Pricerite decision to close stores was made carefully, especially during an economic downturn, which meant fewer people would be considering updating their home furniture.
He added that Pricerite’s circumstances were different from furniture giant Ikea, although they were in similar markets.

Lee said Ikea could command a good deal with shopping centre landlords, who would hope to capitalise on the popularity of the Swedish chain to attract customers.
He added the departure of many members of the middle-class as part of the emigration wave could have contributed to the closure of some of the Tom Lee Music shops with lower demand for musical instruments.
“Some people might choose to buy online as well,” he said.
Tom Lee Music declined to comment further on the closures.
Businesses and shopping malls in Hong Kong have been hit by an exodus of people to mainland China for shopping, dining and holidays since the border reopened in 2023 after years of Covid-19 travel restrictions.
Retail sales in June fell 9.7 per cent compared with the year before, the fourth monthly contraction in a row.


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Hong Kong economy

Hong Kong home store chain Pricerite and Tom Lee Music shut branches

A customer looks at signs on the now-closed Tom Lee Music store in Kennedy Town. Photo: Dickson Lee

The now-closed Pricerite North Point branch in the Fitfort Shopping Arcade. Photo: Facebook / @ Pricerite

The Tom Lee Music branch in Tseung Kwan O, one of 13 across the city. Photo: Facebook/Tom Lee

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Sales in June shrank to HK$29.9 billion, after an 11.4 per cent year-on-year decline in May. Photo: Jelly Tse

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News

Hong Kong

Pricerite, a major furniture and electrical appliances store, shuts two branches; Tom Lee Music also closes two outlets


Pricerite, a major furniture and electrical appliances store, shuts two branches; Tom Lee Music also closes two shops.
