Pricerite told The Post on Saturday that the company regularly reviews its store development strategy to improve the online and offline customer experience.

“Consumer confidence is currently seriously affected by the weak economy. Combined with the new norm of Hong Kongers moving north to spend money and frequently traveling abroad, local retail sales have taken a hit,” the company said.

“Rent is an important issue for retailers. We will weigh our profits, costs and market changes, open or close stores and adapt our strategies.”

Tom Lee Music, which still operates 19 stores in Hong Kong after the closures, posted an ad on its Facebook account last month for an “ultimate countdown discount” at the two closed stores.

The company offered an additional 5% discount on pianos and digital keyboards on display, as well as some guitar products, in addition to a previously announced sale.

Simon Lee Siu-po, honorary fellow of the Asia-Pacific Institute of Business at the Chinese University of Hong Kong, says the availability of online alternatives – often cheaper ones – as well as the recent wave of emigration may have contributed to the closures.

“Some customers may shop on Taobao or other channels,” he said.

“Furniture stores in Hong Kong are most likely ordering their goods from the mainland anyway, so people could do that directly.

“There are alternatives that would be a blow to Pricerite.”

“What’s worse, if they have such a large showroom in Hong Kong, customers in the mainland would look for similar products after looking at their furniture,” Lee said.

He added that high rental costs would not help Hong Kong-based retailers.

The e-commerce platform Taobao is part of the mainland China-based Alibaba Group, which also owns the South China Morning Post.

Lee said any decision by Pricerite to close stores was made carefully, particularly during an economic downturn that meant fewer people would consider updating their home furnishings.

He added that the circumstances at Pricerite are different from those at furniture giant Ikea, although they operate in similar markets.

Lee said Ikea could do good business with shopping mall owners who want to capitalize on the Swedish chain’s popularity and attract customers.

He added that the departure of many middle-class members as part of the emigration wave may have contributed to the closure of some Tom Lee Music stores as demand for musical instruments declined.

“Some people may also choose to buy online,” he said.

Tom Lee Music declined to comment further on the closures.

Since the border reopened in 2023 after years of travel restrictions due to Covid-19, Hong Kong businesses and shopping malls have been affected by a mass exodus of people to mainland China for shopping, dining and vacation.

Retail sales fell 9.7 percent year-on-year in June, the fourth consecutive monthly decline.