US fashion chain Forever 21 will pay a monthly rent of HKD11 million (USD1.4 million) to lease a six-storey retail arcade in the Causeway Bay area of Hong Kong, the largest retail leasing transaction in two years.
The store’s turnover has to reach at least HKD60m (USD7.7m) a month in order to cover the monthly rent and generate reasonable profit, said Helen Mak Hoi-lun, director of retail services at property consultant Colliers International.
That means the retailer has to sell four to five clothing items every minute over a 24-hour period at an average price of HKD300 (USD39). It will have to sell at least 6,667 clothing items a day. Forever 21’s aggressive push into the city’s tough retail sector reveals it is confident in the market outlook.
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