COS has signed a long-term lease for a four-level, 14,200-square-foot flagship at 16 Calle Fuencarral in Madrid.
The property is owned by Thor Equities, which declined to comment on the deal.
COS will use the first three floors of the Calle Fuencarral flagship will for selling space while the fourth will become an office for the Swedish brand. The store is expected to open in the first quarter of 2018.
COS is a rising star in the portfolio of parent company, H&M. The brand is becoming more visible and its growth considered a model for some of the smaller brands under the H&M umbrella. COS’ modern wardrobe essentials with details inspired by art, technology and architecture, have resonated with consumers looking for seasonless fashion.
COS, which operates 209 stores in 35 markets, entered Malaysia, Israel and Slovenia this year. Of the 430 new stores H&M plans to open in 2017, most will be namesake units, and about 70 to 80 stores will be devoted to COS, & Other Stories, Monki, Weekday and ARKET, a new brand within the H&M group.
COS’ revenue in 2017 is expected to reach approximately 10 billion Swedish krona and its profitability is in line with the H&M brand, the company said in its six-month report, released in May. COS, & Other Stories, Monki, Weekday, Cheap Monday and H&M Home are expected to contribute an increasing share of the growth and value of the company.
“The value of COS today already far exceeds the amount we invested in it and this is just the beginning of the journey,” Karl-Johan Persson, chief executive officer, said in the report.
Thor’s portfolio transactions and development pipeline are in excess of $10 billion, totaling more than 20 million square feet. Vacancies have been mounting in prime Manhattan retail corridors as demand for space wanes due to competition from the Internet, excessively high rents and the fact that fewer retailers are opening new stores, but rather, rationalizing their existing fleets. Thor had its share of vacancies, but recent deals have include Lululemon at 597 Fifth Avenue, Alo Yoga at 164 Fifth Avenue, and Tom Ford, which today opened at 680 Madison.
In recent years, Thor has been aggressively investing overseas, buying assets in Paris, London and Madrid, while raising funds to invest in Thor Urbana, a real estate investment and development company based in Mexico that’s developing more than 11 million square feet of lifestyle centers, luxury hotels and mixed use projects in the country’s main cities and tourist destinations such as Mexico City, Playa del Carmen, Guadalajara, Merida and Los Cabos.
In Europe, Thor’s retail properties can be found on the Champs-Élysées and Boulevard Haussmann in Paris; Boulevard de la Croisette, Cannes; Burlington Arcade, Oxford Street and Dover Street in London, and Via Della Spiga in Milan.
Spain’s economy is improving with retail sales continuing to expand. Figures from INE released Wednesday showed that retail sales in May grew by adjusted 2.4 percent year-over-year, faster than the 1.9 percent rise seen in April. On an unadjusted basis, retail sales rebounded 3.8 percent, reversing a 1 percent decline in April.
On a monthly basis, retail sales growth slowed to 0.3 percent from 0.7 percent in April. This was the slowest increase in the current sequence of growth that extended to the fourth month. Food and non-food sales gained 0.2 percent each in May, according to RTT.
Calle Fuencarral’s other retailers include Michael Kors, Tommy Hilfiger, L’Occitane, Diesel, MAC, CK Jeans, Adidas and Swarovski. Four Madrid Metro stations in close proximity provide the street with some of the highest footfall in the city. The prime pedestrian shopping thoroughfare in the Spanish capital is close to the Gran Via and Puerta del Sol, where Thor owns at Nos. 5 and 11.