Versace bucks Hong Kong’s retail slump to open its Asia flagship store in Central

International fashion brand Versace plans to open its Asia flagship store in Central in October amid a retreat by other luxury brands that have closed or scaled back their operations in Hong Kong in the face of dwindling retail sales.

Shanghai Commercial Bank said on Monday that the Milan-based fashion house has agreed to take up 12,600 square feet on the ground and first floor levels at its newly redeveloped building at 12 Queen’s Road Central.

The move comes seven months after US luxury brand Coach closed its shop in Central. That space is now occupied by sports brand Adidas at a rent that’s about 22 per cent cheaper.

In November, British fashion house Burberry reduced the size of its Pacific Place store, its largest in the city, by half.

“Taking advantage of declining retail rents and the availability of space in Central, [Versace] sees it is an optimal time to boost its brand presence in Hong Kong,” said Jeannette Chan, regional director of the retail department at JLL.

Recently, Italian legwear and beachwear brand Calzedonia renewed the lease for its ground level shop at 60 Queen’s Road at a 40 per cent cut in rent, said Chan.

A spokesman for the Shanghai Commercial Bank said Versace signed a three year lease term with an option to renew for another three years.