Fwoked: Lane Crawford to Shut Doors in Shanghai

Saturday, November 18, 2006 7:50

In what has been a long time coming, Lane Crawford is shuting the doors at its flagship store in Times Square on Huai Hai Road.

Retail is a tough game in China, and as we have mentioned before, some locations just are not suited for the brands that stake their claim.

When looking at a map of road Huai Hai and doing some basic traffic pattern analysis, one will see that there is a distinct and measurable different between the area east of the dotted line and the area west.

Lane Crawford

The dotted line is the eastern most side of the Hong Kong Electronics market and as you can see, Times Square (represented by the red star) is about one block off the main path for the majority of shoppers…

The Time Square location has always been a difficult one for retailers, and for tenants of Times Square (and Shanghai Square across the street) there has been an ongoing challenge to find ways to attract new consumers to their half of the block. Shanghai Square actually did better at this than Times Square thanks to a large KTV and cinema that occupied the top floors.

In the last 3 years, the prime retail space (Area 2) has been between Area 1 (intersection of Huai Hai and Huangpi Roads) and Area 3 (site of Xiangyang Market). Brands such as Fubu, Swatch, and Nike all have stores here and are intermixed with strong midtier brands (i.e. luxury brands have no place on this road).

As we mentioned in our earlier posts about Nanjing road retail, location is everything. for foreign retailers who wish to find long term success in China, bringing foot traffic will always be an uphill battle, and as Lane Crawford’s experience shows, a block can make all the difference.

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One Response to “Fwoked: Lane Crawford to Shut Doors in Shanghai”

  1. fashionplus.cn - » Extra! Extra! Bishops, prostitutes and desensitized genitals says:

    December 1st, 2006 at 6:10 am

    […] A detailed look (with graphics and everything) at why Lane Crawford closed its flagship store on Huaihai Lu. […]