Famed bakery store Dang Wen Li by Dominique Ansel is pulling down its shutters as changing consumer trends pose fresh challenges to the city's retail and hospitality industry.
The news comes on the heels of a survey which shows that more than one in four Hongkongers are visiting neighboring Shenzhen at least once every week.
Founded by award-winning French pastry chef Dominique Ansel, Dang Wen Li - which means Dominique in Cantonese - announced yesterday on social media that its two stores in H Queen's and Pacific Place in Central will be closed by the end of this month, without detailing the reason.
Five years ago, Ansel set up shop in Hong Kong through InvestHK and once operated as many as three stores in the city.
The chef said he was honoured to go through hard times in the past and was proud of the store's iconic cakes and sweets, which integrate childhood memories of Hongkongers.
While Hong Kong's retail sector has rebounded after the three-year Covid pandemic, the city's residents also now showing an unexpected interest in cheaper goods and dining in Greater Bay Area cities in the mainland.
A recent survey by a retail industry association found that 27.6 percent of Hongkongers visit Shenzhen more than once per week.
Among the respondents, over 95 percent have wined and dined several times together with family members and friends.
Ninety-seven percent said they were happy with their trips to Shenzhen, while 60 percent found high-quality goods were cheaper in Hong Kong.
And at least 60 percent said they prefer shopping malls and large supermarkets, including Sam's Club retail stores.
Meanwhile, a flagship Costco outlet opening in Shenzhen next week will be a further attraction for Hongkongers looking for cheap shopping across the border.
In other news, locals have lost confidence in employment and stock investment, a survey by CityU finds. Though that overall consumer confidence last quarter inched down only 0.2 percent yearly, the indicator in stock investments slumped 12.1 percent from one year ago to 74.3 points, below the 100 point-bar which separates the positive views from the pessimistic outlook.
The score in employment dipped 1.9 percent yearly to 98.5 percent, which means Hongkongers are neutral in their confidence in this field. But this figure fell 4.3 percent quarterly, the largest drop among other sub-indicators this quarter.
