Prada To Close Largest Flagship Store In Hong Kong

Due to decrease of customer traffic, Italian luxury brand Prada will close its largest flagship store in Hong Kong.

Locating in Russell Street, the Prada flagship store has a seven-year lease due in June, 2020 and the company decided not to renew the contract.

It is said that the Russell Street flagship store is Prada's sixth store in Hong Kong. With an area of 15,000 square feet, its monthly rent is HKD9 million, which means its daily rent is up to about HKD300,000. After the withdrawal of Prada, the monthly rent of the store will be reduced by 44% to HKD5 million.

In 2018, Russell Street exceeded Fifth Avenue of New York and became the shopping street with the most expensive rent in the world. According to the latest report of the real estate consultant company Cushman & Wakefield, Russell Street's rent per square feet is USD2,671, which is about HKD20,953.

Prada operated up to nine stores in Hong Kong at its peak and this is not the first time for the brand to close store in the city. At the end of 2016, Prada shut down its Peninsula Hotel store due to the depressed retail environment in Hong Kong.