Italy Luxury Group Tods Considering Closing Some Hongkong Stores

The rent is high, and the market performance has not improved, Italy.

Group Tods is considering closing some Hongkong stores and reducing shop opening plans.

Tods's 2015 earnings report showed that group sales increased by 1.8% under fixed exchange rates, but net profit fell from 92 million 700 thousand euros to 92 million 700 thousand euros last year, due to operating and financial costs.

Emilio Macellari, chief financial officer of TodsTods, revealed that the Hongkong market is the only area with negative performance and no improvement trend.

For Tods group, the high rental cost in Hongkong is still a big problem.

Tods group has discussed with the owners, but has not yet reached an agreement.

The group will close 1-2 of the 14 shops in Hongkong.

Macellari revealed that Tods group plans to open 15-20 new stores this year.

But because the group is considering closing some stores, it may lead to less total stores.

Last year, the group opened 25 new stores.

Luxury brands are closing up recently. According to statistics of RET Rui Yide China commercial real estate research center, last year, the 11 luxury brands such as Louis Vuitton and Cucci had 34 stores, and only 14 new outlets.

Among them, Louis Vuitton is the most powerful shop. There is news that Louis Vuitton will close about 20% two or three line city stores in the first half of the year.

In 2013, LVMH group also had the heart to develop the second tier market in China. At that time, Bernard Arnault, President of LVMH group, said the LVMH group would launch a lower price tag.

LOGO products, stationed in China, etc.

Second tier cities.

Market changes, last year, Louis Vuitton closed 3 stores, the end of this month will also end Shanghai Huaihai Zhong Li Bao Plaza store and a Shanxi Taiyuan store.

Zhou Ting, director of the Institute of wealth and quality, a luxury goods expert and luxury authority Research Institute, said that strategic adjustment and re layout of the shop's initiative to close shop were the positive adjustments made by the major brands to meet the upgrading of the consumption market.