U.S. clothing and accessories retailer Gap is expected to close all its remaining stores in Hong Kong, including its 4-floor flagship store in the heart of Central.

Gap’s flagship store has been located on Queen’s Road Central since 2011 and spans more than 13,000 square feet (1,200 square meters). It is up for rent at HK$3.3 million (US$426,000) per month — a drop from its peak rental value of HK$5.5 million.

During a recent visit, Apple Daily reporters found only old stock remaining on display, with items on sale at a hefty discount. Clothes hangers and mannequins were also on offer.

Gap had already closed five of its eight Hong Kong locations in July. The retailer also shuttered its Tuen Mun branch earlier this month, leaving only its Central flagship and a discount branch in Tung Chung.

Gap did not respond to an emailed request for comment by the time of publication.

Retailers in Central have been dealt a severe blow by the COVID-19 pandemic, with many stores sitting empty. Queen’s Road Central and Des Voeux Road Central — two of the busiest thoroughfares in the central business district — saw a vacancy rate of around 10.1% in the third quarter, a 3.1% increase over the previous three months, according to Midland Realty.

Apple Daily found 10 empty storefronts along Queen’s Road Central, including a high-profile location formerly occupied by clothing brand Esprit. The two-floor property occupies nearly 18,000 square feet, and fetched a peak monthly rental value of HK$2.7 million. However, it has sat empty since April despite a 30% discount on the rent.

Some local retailers have taken advantage of the plummeting rents in Central, with relatively inexpensive brands getting a foothold in the area. An 8,500-square-foot store previously occupied by German fashion brand MCM has been taken over by sports brand Decathlon. The sporting goods retailer was only paying around HK$800,000 for a site that at its peak fetched monthly rents of HK$3 million.

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