Loading...
According to the British Office for National Statistics, the UK economy will fall into a technical recession in the second half of 2023, and London, as one of the world's luxury consumption centers, will have a weak performance in its high-end luxury retail industry.
Reporter Chen Lincong: The British fashion and luxury clothing chain has been closed, and at the same time, another 14 stores will be closed one after another. According to British media reports, the clothing chain has a direct relationship between the closure of a large number of stores and rising store rents. In the UK, not only is the cost of living rising, but the cost of doing a luxury business in the UK is also soaring, making it difficult to do business.
On the 28th of last month, the revised data released by the Office for National Statistics showed that the UK's GDP fell by 0.3% quarter-on-quarter in the fourth quarter of 2023, the second consecutive quarter of decline. Two consecutive quarters of negative economic growth are widely considered to be in a technical recession.
Reporter Chen Lincong: Bond Street is the representative of London's high-end commercial street, and this narrow street is home to high-end luxury brands from around the world. In the context of the economic downturn in the UK, the average annual rent per square meter of this street is more than 12,000 pounds, and the annual rent of a 100-square-meter store needs about 1.2 million pounds (about 11 million yuan). The "rise" and "fall" between rising store rents and declining sales have exacerbated the difficulty of operating high-end brands. It can be said that the operating difficulties of the British high-end luxury industry are a microcosm of the technical recession of the British economy in the second half of last year.
Please indicate CCTV Finance and Economics for reprinting
Editor: Pan Xu