FILA Rents 1 Million Yuan per Month in Causeway Bay Shop The core retail area is the first to be subsidized by the original tenants this year

Although the retail market is gradually improving, high-end consumer goods continue to shrink, and popular sportswear brands are waiting to expand. The ground floor of the Hong Kong Mansion in Causeway Bay, originally owned by the US watch and apparel brand Fossil, was suspected to have failed to deliver as expected. It was eventually rented by the sportswear brand FILA at a rent of $1 million per month and became the first top retail store in this year. In the case of rent, Fossil will also need to subsidize about 500,000 yuan per month to the owners.

Fossil was off rent and left early

According to sources, the American brand Fossil originally rented the S and L shop lofts on the ground floor of Hong Kong Mansion, 1A to 1L, Yee Wo Street, Causeway Bay, with a total gross floor area of ​​1,640 sq ft. Since the beginning of 2013, the monthly rent has reached $2.1 million and the rent has been reduced to $1,280. . Fossil opened the first flagship store in Hong Kong at the site and sold only high-volume consumer goods such as watches at the beginning of the store. Since 2014, the consumption of high-end goods has fallen and Fossil has begun to resell handbags and other goods. The brand renewed the lease for more than 3 years in 2016, with the monthly rent falling by 28.6% to 1.5 million yuan. Although the expenses for renting shop have been reduced, but because of the shrinking business, Fossil has launched a rent-for-hire arrangement in exchange for early departure.

It is understood that the berth has just been rented by the sports brand FILA. The monthly rent is 1 million yuan, which means that the rent is 610 yuan, which is only slightly higher than the monthly rent of 900,000 yuan 10 years ago. As Fossil’s lease expires in February of next year, Fossil will still have to subsidize $500,000 per month for the remainder of the ten-month lease to implement the monthly rent of RMB1.5 million as specified in the original lease. Materials involved 5 million yuan.

FILA is a sports brand with more than 100 years of history, while retail business of China Hong Kong, Macao and Singapore was acquired by Anta (02020) in 2009. Together with the latest leased shops in Causeway Bay, FILA currently has 16 outlets in Hong Kong, most of which are shopping malls.

Sports brand renting wins high-end consumption

Actually, FILA rented G1B underground store iSQUARE, 63 Nathan Road, Tsim Sha Tsui, as a branch, with a construction area of ​​about 2,200 sq ft, which was just renewed at about $2 million per month. The amount of 909 yuan, which is similar to the old lease, has not been reduced by rent. It is sufficient for the sports brand to have a higher rent under the current market.

Sportswear brand has become one of the leading merchants for leasing in recent years, and several brands have actively expanded. In addition to familiar brands such as adidas and Nike, they have opened flagship stores in retail districts such as Causeway Bay, Central, and Tsim Sha Tsui. Brand MLB Korea first explored overseas markets last year. With Hong Kong as the first stronghold, it leased streets in Sai Yeung Choi Street South and Queen’s Road Central in Mong Kok. The monthly rent was about $1.9 million.