Versace's largest Asian flagship set for Hong Kong despite retail downturn

By

Benjamin Fitzgerald

Published
Apr 29, 2016

Versace will open its largest flagship store in Asia at the recently developed Shanghai Commercial Bank building in Hong Kong. The store will open in Central despite a significant slowdown in the retail sector, which the luxury brand hopes to capitalise on with cheaper rent.

The Italian-Versace will establish the mega store across the ground and second floors of the Shanghai Commercial Bank building located on 12 Queen's Road, Central. Versace's store will cover 12,600 square feet.

According to local newspaper The Standard, the amount of rent of the facility is unknown. However, the average rent at the new Shanghai Commercial Building, set to open in August, is HK$106 per square foot for a total space of 72,000 square feet.

The bank will recruit more than HK$20 million in income, accounting for 7 percent of revenue.

Spokesperson for the Shanghai Commercial Bank, David Kwok Sek-chi disclosed to local media that Versace has signed a three-year fixed contract followed by a flexible contract for another three years thereafter.

Following the retail downturn in Hong Kong, Versace is taking advantage of declining retail rents and the availability of space in Central.

“Versace sees it is an optimal time to boost its brand presence in Hong Kong," said Jeannette Chan, JLL regional retail director.

Versace currently has two retail stores in Hong Kong in Admiralty and Tsim Sha Tsui. Its new Central flagship will sell men's and women's apparel, jewellery and accessories.