LONDON has been named united of the world's retail powerhouses in an exceedingly new study. the town joins NY, Paris and Hong Kong in an exceedingly list of the highest searching areas - notable for having the biggest variety of recent store launches from leading fashion brands.
The 2013 Retail Market Study, conducted by Swiss-based firm Location cluster, analysed findings from prime locations in one hundred forty five cities globally. It conjointly found that almost all store closures (from "important" major brands), occurred as a result of the corporate not having careful data of the placement.
"The retail realty world is within the dark. there's no databank voice communication this location is well worth the cash which one is not," Marc-Christian Riebe, founding father of Location cluster and author of the study, told WWD. "Look at it from the purpose of read of the manager to blame of enlargement. Zara opens five hundred new stores annually, H&M 250. Zara closes down just about twenty five to thirty of them in an exceedingly given year, H&M twelve to thirteen, as a result of they lacked conclusive data regarding the placement at the time of gap. Considering that a replacement store will simply price €10 million to €30 million (£8.5 million to £25.4 million), in high locations like Oxford or Regent Street, that is a expensive mistake."
The survey conjointly found that Hong Kong is home to the world's highest retail rents - at a median of just about $4,000 (£2,600), per sq ft. compared, annual rates calculate as around $1,430 (£94o), per sq ft on London's Bond Street; just about $2,625 (£1,727), on New York's Fifth Avenue; and $2,170 (£1,428), on the Champs-Elysées in Paris.
source vogue.co.uk
