On January 2, Shanghai Yimin Commercial Group Co., Ltd. (SH600824, hereinafter referred to as “Yimin Group”) announced that it has signed a cooperation agreement with H&M‘s subsidiary, Hennes & Mauritz (Shanghai) Commercial Co., Ltd., to lease and operate the group’s Jialidu Commercial Building. Under this agreement, H&M will reopen its first store in the Chinese Mainland, located on Shanghai’s bustling Huaihai Road.
The lease term will last five years, from January 1, 2025, to January 1, 2029. According to the agreement, excluding the rent-free period, the annual rent for the first five years is set at RMB 25.5 million (approximately USD 3.5 million), payable in monthly installments. If the lease is renewed, the annual rent will increase to RMB 27.5 million (approximately USD 3.8 million) for the period from January 1, 2030, to December 31, 2034, with the payment method remaining unchanged. Rent payments must follow a “pay-before-use” principle, requiring the lessee to pay the monthly rent within the first five business days of each month.
Yimin Group stated that this collaboration aims to promote the commercial restructuring of Middle Huaihai Road and contribute to the creation of a “century-old Huaihai Road.”
The Huaihai Road store, which opened in 2007, was H&M’s first and largest store in the Chinese Mainland market. However, in late June 2022, the store was closed due to the impact of the COVID-19 pandemic and weak consumer demand. Since H&M’s departure, the space has remained vacant.
Starting in the 2024 fiscal year, H&M has been gradually refurbishing several key stores, including the Nanjing East Road flagship store in Shanghai, the Joy City store in Beijing, the MixC store in Chengdu, and the Intime City store in Shaoxing, to enhance customers’ shopping experience comprehensively.
In May last year, H&M officially unveiled its flagship store at Shanghai Joy City on Nanjing East Road, hosting a grand opening ceremony attended by leaders of the Huangpu District Government, the company’s Retail Greater China President Yann Bozec, and various partners.
According to H&M’s latest financial report, its third-quarter sales for fiscal 2024 fell by 3% year-on-year to SEK 59 billion while remaining flat in local currency terms.
| Sources: Official press release, Reuters
| Image Credits: H&M official website, brand-provided
| Editor: LeZhi
