Swedish fashion retailer H&M plans to close its flagship store in Hong Kong, according to the The Wall Street Journal.

The 30,000 sq ft shop will shut in autumn 2013 and be replaced by one operated by rival clothing retailer Zara.

H&M spokeswoman Cher Chui said the retailer had been unable to reach an agreement with its landlord. Zara will pay about $1.4m (£891,000) a month in rent – double what H&M had been paying.

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