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Luxury retailers face a new reality in HK

Sales have declined at a double digit rate because Chinese shoppers have diverted their holidays and discretionary spend elsewhere.

PAST ITS PEAK: Hong Kong's attraction as a shopping destination for mainland Chinese consumers used to be clear - it was close and cheap.

2015 was a terrible year for the luxury goods sector. The Middle East respiratory syndrome (Mers) outbreak in South Korea, Chinese stockmarket volatility and unusually warm weather all contributed to a poor retail environment. However, the main drag was Hong Kong where sales declined at a double...