$4.6 million per Year! Chanel Reached one of the Largest Leases in HK Since the Pandemic

Chaileedo Press
Jun 6, 2023
2 min read

Chanel has signed one of the largest leases since the pandemic by renting a two-story shop in Causeway Bay, one of Hong Kong's top shopping districts. The London-based luxury brand is set to focus on the HK travel retail market.

French luxury brand Chanel has recently rented a two-story duplex shop of approximately 1,765 square meters in the Capitol Centre of Causeway Bay, Hong Kong, as well as a six-story street-facing advertisement facade. The lease term is from May 2023 to May 2026, with two additional three-year renewal options, allowing for a total lease period of up to nine years.

Located right in front of a subway station exit, the shop boasts a large facade, making it one of the most recognizable retail locations on what was once the world's most expensive shopping street. The space was previously rented by fashion retailers Forever 21 and Victoria's Secret before remaining vacant during the pandemic.

Although Chanel has not yet disclosed the specific decoration and operation plans for the store, nor revealed the rental amount, several local media in Hong Kong have reported that Chanel pays a monthly rent of approximately HKD 3 million ($383,000), making it one of the biggest leases since the outbreak of the pandemic.

Hong Kong Census and Statistics Department released the provisional statistics of retail sales for April 2023. The value of total retail sales in April provisionally estimated at HK$34.7 billion ($4.43 billion), saw growth of 15% compared to last year. While the total value of retail sales increased by 21.7% during the first four months of 2023 when compared with the same period in 2022.

The new store in HK indicates that Chanel is optimistic about China’s travel retail market. Chanel’s CEO, Leena Nair, stated that the Asia-Pacific region, led by China, accounts for more than half of the company's revenue. Chanel's CFO, Philippe Blondiaux, also stated that the company will continue to open new independent beauty and fragrance boutiques.