Prada The Largest Hongkong Store Lease Will Expire Or Close.

Recently, Russell Light Group, owner of "Plaza 2000" in Tongluowan street, Hongkong, China, revealed that the rental of Italy luxury brand Prada (Prada) will expire on June 2020, when Prada will be withdrawn and no longer be renewed. In this regard, Prada declined to comment.

The store is the sixth and largest store of Prada in Hongkong, China. It has three floors, 1393 square meters, and a monthly rent of HK $9 million. Early Light said that after the Prada was withdrawn, the store's monthly rent would be reduced by 44% to 5 million Hong Kong dollars. If necessary, it could be divided into small shops.

Since the launch of the "free travel" plan in Hongkong in 2003, the tax exemption policy has attracted many mainland tourists to Hongkong. During this period, more and more luxury brands entered Hongkong. Russell street has become the most expensive street in Hongkong. In 2012, the street became the most expensive commercial street in the world at the rate of $2800 per square foot per year.

However, since 2014, the retail market in Hongkong has continued to slump, and fewer and fewer mainland tourists and consumers are going to Hongkong.

In particular, in recent times, influenced by the turbulence of Hongkong's social situation, the consumption of tourists and tourists has been greatly reduced, and the retail, catering and tourism industries have been hit hard. By the end of June this year, Hongkong's retail sales fell by 6.7% over the same period last year.

Hongkong's luxury market has also been depressed due to the sluggish retail business and the impact of e-commerce. By the end of June this year, Hongkong's luxury sales volume fell by 17% to 5 billion 700 million Hong Kong dollars compared with the same period last year.

Prada, the world's leading luxury brand and listed on the Hongkong stock exchange, has also been greatly affected by the Hongkong market. As early as 2016, Prada turned off the store at The Peninsula Hong Kong. (see "ornate ambition" report: Prada is located at The Peninsula Hong Kong store closed at the end of the month with a monthly rent of HK $2 million 400 thousand).

In early August of this year, Prada announced 2019 financial data for the first half of the fiscal year. The net sales in the first half of the Greater China region fell 2.3% to 337 million euros, and the fixed exchange rate decreased by 5.1% over the same period last year.