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"costly" Crushed Rent Shanghai Yongle "flag Shop"

Reluctant to take up to 38 million yuan next year

, the "astronomical" rent, Shanghai Yongle Home Appliances in the first major store??? In the Pudong New Shanghai Commercial City, the New World stores in the officially closed, ending six years of operating history.

"Rent increase is the main factor related shops." Wing-lok, said Marketing Manager Huang Jianping, in the past six years, the rent from the earliest New World store 6 million yuan / year in rent, rose to 26 million yuan this year, has been turned four times.

It is reported that in 1999, Yongle leased nearly 10,000 square meters of the New World stores to open up their first large-scale stores in Shanghai. As in the area and

Sell Scale, "led the way", which stores witnessed the largest in Shanghai


Appliance Retail Business Paradise, "from small to large" growth history, the great banner of Paradise significance. Therefore, although

Rates Quadrupled, over the years has been not willing to give up Paradise.

But the landlord in the 26 million yuan next year, based on prices even 46% a year and 38 million yuan out of the "high price", as the conditions of renewal. It finally Yongle had "reluctantly must sell."

Huang Jianping told reporters, "such high prices, has surpassed

Home appliance chain Reasonable accommodation costs, as a Hong Kong

Listing Company, Paradise no longer willing to do for such a high rent unnecessary expenditure. "According to him, the New World stores closed, this resource has been moved to the shop with only a road in the financial mall across the shop, this store is a newly built Pudong Paradise

Flagship store Area expanded more than 50% store new continent, but the financial mall is a new business district, less than the cost of new land rental shop.

Landlord's shop yesterday, calling the New World??? New World Development Company Limited, its

Office Director, Ms. Weng said the negotiations with the Wing-lok "boss" hands-on, she do not know the specific circumstances, but the withdrawal of Paradise, should no longer co-operate, and other home appliance chain.

"Rent increases and forced to close his business case in the future will increasingly become a common business problems." Shanghai Jiao Appliance Industry Association, told reporters yesterday the Secretary-General Han Jianhua, Wing-lok, 1999, entered the New World store in Pudong , the surrounding shopping district just started is not mature


Risk Great. And so finally to Paradise "raw fried" to drive business district after the development, but also face the dilemma of the rent prices.

"Rising commercial rents will become the development of a chain of weakness." Han Jianhua said. It is reported that businesses in order to avoid this risk, in recent years has gradually changed from the leasing business premises from the purchase of property, but this approach is only suitable for strong companies, for those just starting the business is obviously not realistic.

"costly" Crushed Rent Shanghai Yongle "flag Shop"

By: frbiz2@foxmail.com
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