Calzedonia pays the price in Russell Street
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Italian fashion brand Calzedonia has reportedly renewed its Causeway Bay lease at a 15 per cent increase.
According to reports in business media, the firm re-signed for the 400sqft retail space with just a month to spare on its existing contract at a cost of HK$9 million (US$1.15 million) for one year on the world’s most expensive retail strip, Russell Street.
The rental translates to $750,000 ($95,674) per month, a typical figure for the shopping street that demands pricier rentals than even New York’s 5th Avenue. The street is a must-see for big-spending luxury retail hunters from Mainland China.
The opening of the new Hong Kong-Zhuhai-Macao bridge and high-speed Express Rail Link is expected to attract higher numbers of tourists and reverse the city’s trends of falling rentals, but to date the increases has not met expectations.
Calzedonia operates 16 outlets in Hong Kong, including those for its Intimissimi and Falconeri brands.
The opening of the new Hong Kong-Zhuhai-Macao bridge and high-speed Express Rail Link is expected to attract higher numbers of tourists and reverse the city’s trends of falling rentals, but to date the increases has not met expectations.
Calzedonia operates 16 outlets in Hong Kong, including those for its Intimissimi and Falconeri brands.
Questions & Answers
Q.What is the new annual rental cost for Calzedonia's Russell Street store?
What is the new annual rental cost for Calzedonia's Russell Street store?
Calzedonia has renewed its lease for HK$9 million (US$1.15 million) for one year. This cost is for the 400sqft retail space in Causeway Bay.
Q.How does this new rental figure compare to the previous lease agreement?
How does this new rental figure compare to the previous lease agreement?
The new rental represents a 15 per cent increase compared to Calzedonia's previous lease. This figure is reported by business media sources.
Q.Why might Calzedonia have renewed its lease despite the rent increase?
Why might Calzedonia have renewed its lease despite the rent increase?
The street is known for attracting big-spending luxury retail customers from Mainland China. Also, new transport links were expected to boost tourist numbers, although this has not fully met expectations.
Q.How many stores does Calzedonia operate in Hong Kong?
How many stores does Calzedonia operate in Hong Kong?
Calzedonia operates 16 outlets across Hong Kong. These include stores for its Intimissimi and Falconeri brands, in addition to its main Calzedonia brand.