LONDON — Milanese fashion concept store 10 Corso Como will shut its 27,000-square-foot Shanghai store at the end of May as its Chinese operation partner, the L Capital Asia-backed Trendy Group, has declined to renew the lease and the partnership, according to the retailer.
A spokesperson from 10 Corso Como in Milan told WWD the closure of the Shanghai store is expected. “The seven-year license of the 10 Corso Como brand in China and the lease of the building of 10 Corso Como at 1717 West Nanjing Road, Shanghai, have arrived at maturity. 10 Corso Como and Trendy Group agreements will be concluded by 2019.”
Trendy Group could not be reached for comment at press time.
The Guangzhou-based Trendy Group owns nine fashion brands such as Ochirly, Five Plus, Coven Garden, Trendiano, Superdry, Miss Sixty, Denham, and runs more than 3,000 stores across more than 290 cities in China with more than 8,000 employees.
According to local media reports, the store is conducting a sale with up to 70 percent off merchandise in recent weeks.
It should come as no surprise that Trendy Group would want to put a stop on this expensive retail experiment. Trendy Group specializes in mass market fashion and has little experience running a high-end operation. It shut 10 Corso Como’s store at SKP Beijing in 2017 due to losses, despite SKP being the most lucrative luxury retail destination in China.
Not all fashion retailers have met the same fate at 10 Corso Como and, indeed, the past few years have been a golden time for select shops in China. Shanghai Fashion Week’s trade show business has grown exponentially to meet the demand from thousands of stores in different tiers of cities across China.
High-end department stores such as SKP Beijing and Réel Mall in Shanghai, which is just a few hundred meters away from 10 Corso Como Shanghai, have all expanded into the select shop business by launching SKP Select and Assemble by Réel and have gained positive feedback from consumers and the local press. I.T has partnered with Dover Street Market and Galeries Lafayette to seize the fast-growing market.
The Italian retailer has stopped buying the fall 2019 season, and members of the buying team have left to join competitors such as the newly opened Galeries Lafayette Shanghai or the Balancing, a concept store owned by Shanghai’s largest state-owned retail conglomerate Bailian Group, another source said.
Having set its foot in Tokyo and Seoul in 2002 and 2008, respectively, 10 Corso Como Shanghai was also a part of the original Milan store’s global expansion ambition. The five-floor shop with a café, a gallery and a restaurant, was opened in 2013 in the prime retail haven Jingan Temple shopping district in central Shanghai, and was marked as Trendy Group’s first operation in its “lifestyle pavilion” business.
Despite being close to shutting its Milan store in 2015, as its distribution licensing partner Dieci Srl, owed the Italian state more than 4 million euros in accumulated debts, founder Carla Sozzani managed to open a New York store in Seaport District in collaboration with the developer Howard Hughes Corp last year.