Louis Vuitton will shut one of its shops in Hong Kong. Protests have hit demand as high rental costs bite. The decision to close the shop came after the company failed to reach an agreement with its landlord to cut rent in the mall outlet.

Louis Vuitton, the world's biggest luxury goods brand by sales, has eight shops in Hong Kong, one of the world’s top shopping destinations. High end fashion labels have hunkered down in Hong Kong since demonstrations escalated in June. Hong Kong’s retail sales fell 23.6 per cent from a year earlier in November. Until now, luxury brands had only shut stores in Hong Kong temporarily when protests flared. Some brands are weighing up redirecting some of their investments elsewhere, including to the Chinese mainland and other parts of Asia where many have managed to make up for lost sales in Hong Kong. Some brands are trying to renegotiate notoriously high rents in Hong Kong as one way of mitigating the hit to operating margins.

Hong Kong has long drawn numerous tourists from the Chinese mainland who pick up luxury cosmetics, accessories and clothing at slightly lower prices than at home.

LVMH, based in France, owns Louis Vuitton apart from other fashion brands like Christian Dior and Hennessy.