HONG KONG — Hennes & Mauritz is planning to shutter its first store here by the end of next year and move to another location as the city’s commercial rent prices skyrocket. Inditex’s Zara is expected to move into the location H&M is vacating.
H&M decided to move out of its location in the Central shopping district after it could not come to an agreement with the landlord, said a spokeswoman for the retailer. “To us, it’s not a big drama. In Hong Kong, it’s quite common to see shops switching places,” she said.
The company opened its Central flagship shop in 2007 and now has 12 locations in the city as well as 80 in mainland China.
Zara will be paying 11 million Hong Kong dollars a month, or $1.4 million, for the 30,000 square foot space — about double what H&M was paying, estimated a real estate source. Zara declined to comment.
According to real estate firm Jones Lang LaSalle, the average monthly rent for high street shops in Hong Kong’s Central district is 673 Hong Kong dollars, or about $87, a square foot.
Commercial rental prices have continued to rise in Hong Kong, albeit at a slower pace than last year as retail sales slow down. Hong Kong retail sales growth slowed dramatically in May, pointing to increased caution on the part of mainland Chinese tourists.
Helen Mak, director of retail services at Colliers International, said the firm anticipates commercial rental prices in Hong Kong’s four big shopping districts (Central, Causeway Bay, Mong Kok and Tsim Sha Tsui) will increase about 12 percent for 2012, down from an increase of about 25 percent in 2011.
Despite the slowdown, Mak said that for “iconic high street” locations such as Queen’s Road Central, Russell Street in Causeway Bay or Canton Road in Tsim Sha Tsui, prices continue skyrocketing because “there is no new supply” and more and more international brands have been coming to Hong Kong. Moreover, existing brands are expanding as well.
“Demand is way more than supply, not even counting newcomers,” she said.
H&M is the latest of many retailers in Hong Kong to be displaced by high rents. Shanghai Tang was forced to move from its original Pedder Street location to make room for Abercrombie & Fitch, which reportedly agreed to pay double what Shanghai Tang was paying. Similarly, Forever 21 displaced Hong Kong-based apparel retailer Giordano.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews