Sunday, August 5, 2012

Fashion Flash; H&M closing its flagstore in Hongkong

Today's post is just a short post about what is going in the fashion industry. Yes, I am talking about what's making the headlines in fashion biz, particularly about H&M.

Recently Swedish fashion retailer H&M has decided to shutdown their flagship store in Hong Kong. The reason why they are going to shutdown their flagship are due to the rising rent prices. Hong Kong is one of the world's most expensive place for retail rent with almost $4000 per square foot. Currently, the 30.000 square feet flagship store is under pressure because the new rent now surmounts to almost $1.4 million a month which may possibly make the store unprofitable. The store will close on Fall 2013.

The new tenant for the store is now Zara. Another fashion retailer that is know for it's massive clientele and possibly H&M's major competitor. The Spanish fashion retailer has agreed to pay rent of $1.4 million almost twice of what H&M is paying.

Anyway here's another my currently favorite song!

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