Louis Vuitton reopens in the Times Square shopping center in Hong Kong
Managing Director at LUXONOMY™ Group Middle East
Louis Vuitton has confirmed its return to the Times Square shopping center in Hong Kong after a three-year absence. This comeback marks a significant expansion and reflects renewed confidence in the luxury retail sector, highlighting Hong Kong's enduring appeal as a global shopping destination.
The new Louis Vuitton store, which will cover approximately 12,000 square feet, is currently under construction and is expected to open its doors before Christmas. While rental details have not been disclosed, experts estimate a lease period of more than five years, reflecting a long-term commitment to the location. This move has boosted the occupancy rate of Times Square beyond 90%, a significant indicator of the shopping center's recovery.
In the past, Louis Vuitton had established a considerable presence in Times Square, with a 10,000 square foot store that reportedly commanded a monthly rent of HK$5 million. However, the brand closed its doors in March 2021, amid a period of social unrest and the pandemic, with reports suggesting the closure was due to the property owner's refusal to reduce the rent.
Now, with the new store being 2,000 square feet larger than its predecessor, Louis Vuitton is making a clear statement: it is here to stay and grow in Hong Kong. The luxury sector, seemingly insulated from broader economic challenges, continues to find ways to thrive.
In February this year, LVMH, Louis Vuitton's parent company, leased two floors totaling 45,000 square feet in Quarry Bay's Taikoo Place for a monthly rent of more than HK$2 million, further consolidating its footprint in the city.
The reintroduction of Louis Vuitton in Times Square comes at a time when the retail landscape is undergoing transformation. Major brands are rethinking their strategies, with some opting to move from high streets to shopping malls, driven by the proliferation of pharmacies and cosmetic stores that have altered the retail mix in central areas.
As part of a broader trend, luxury brands are recalibrating their focus towards the Chinese market, with Louis Vuitton recently increasing the prices of selected products by an average of 6%. The move appears to be part of a strategy to align with the changing dynamics of luxury consumption in China.
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