Prada store in Hong Kong

Prada Group is set to open an 8,000-square-foot store in Hong Kong's K11 Musea shopping mall, marking its first significant retail expansion in the city since downsizing efforts that included the closure of its flagship store in Causeway Bay in 2020. Construction is expected to start soon, with the opening planned for early next year, and rent for the new store will likely be partly based on sales. The luxury brand's return reflects a broader trend of global luxury retailers reinvesting in Hong Kong, where average retail rents have dropped significantly, being about 45% lower than pre-pandemic levels. Despite economic challenges and social unrest, high-end malls continue to attract wealthy international clients, providing a stable revenue stream for brands. Additionally, Hong Kong's affluent residents offer some resilience against declining sales in mainland China, where shopping policies have shifted. The new store aims to capitalize on the opulence of the city and the growing luxury market.