Adidas Took Over Coach Store In Central, Fast Fashion And Sports Brand To Expand.

Due to the high rent, Coach will move out of the Queen's Road Central flagship store two years ago. Now it is looking for the top rent. It is expected that the jewellery store will take about HK $5 million 700 thousand a month, down 20% from the original rent.

Latest news from Hongkong, recently, an industry insider revealed that Adidas plans to take over a large Coach store in central, which is another case of the expansion of sports brands and the withdrawal of luxury goods companies.

Adidas refused to confirm the news about the opening of the store, but when asked about it, a brand spokesman claimed that the company was preparing to make a public announcement at the end of the month.

At the end of August, Coach retired to rent a two-storey four storey high-rise store and moved to a more comfortable space near IFC, an international financial center.

This is similar to the practice of many luxury companies, trying to reduce operating costs to balance the income gap between Mainland Chinese tourists and consumers.

Although most of this year's retail business in Hongkong is dismal, the recent performance of the golden week is also disappointing, but a report from Cushman &Wakefield, a real estate consultancy, points out that it is fast fashion now.

Opportunities.

From Prada to Gucci to Coach, many luxury companies are calling on owners to cut down on expensive rents, and even some luxury brands have begun to pull out of their core commercial streets.

According to the financial times, Jaeger Le Coulter, a Swiss watch manufacturer in Tongluowan, has now become a local discount cosmetics shop, and the rent has dropped by 40% over the peak of 2012.

Another Swiss watchmaker, TAG Heuer, closed a shop in Tongluowan, Hongkong, in August. The company said the rent was too high.

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But a lot of high activity sportswear.

The trend of expansion in Hongkong.

Last month, Lululemon opened second stores in Tongluowan's Shen Shen square, and Under Armour opened a new store covering more than 3000 square feet in central. Now the total number of stores in the city is 3, and 2XU has opened its first store in Sogo.

In early May, Fila also opened its first flagship store in Tsim Sha Tsui.

Adidas has reserved a store location for women's wear, which is only two blocks away from the forthcoming store. It opened a Adidas Originals flagship store in January this year.

The opening of sports brand stores may benefit from the reduction of rents.

The high latitude property report adds that the rent in major retail areas may continue to shrink until the end of this year.

The report said: "due to short-term resistance, Hongkong shops rent may drop between 10% and 20%, and different departments and secondary markets will be different."

Luxury companies withdraw.

Take advantage of it.

Fashion headline has reported that H&M will return to Hongkong island and will launch the largest flagship store in Hongkong at the end of this month, which means that the fast fashion brand will return to Hongkong city center.

It has an area of 4366 square meters and will open in October 30th at Fashion Walk mall in Tongluowan.