The first Starbucks store in China closed

 

 

 

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( Taking from http://ilonggang.sznews.com/lgnews/content/2013-06/22/content_8210407.html)

In the end of June 2013, first Starbucks store was closed in China. It was located in Guomao Beijing. The next store that instead of Starbucks located in this area is a luxury French brand named GOYARD. It is selling luxury handbags.

This Starbucks store was full of younger generations’ memory. Lots of young people fall in love and had sweet chat in this store. Before this store, Chinese people did’t know Starbucks and dislike the taste of coffee. This stores mean a lot for many people. But why Starbucks disappeared in this area?

There is undeniable that this Starbucks store have many loyalty consumers and maintained busy every day. However, the rental fee is further  than it incomes. Although there are a lot of customers in this store, they can not cover the rental fee!

This is a typical tendency of Chinese rental market. Guomao Beijing is located in the hottest location in Beijing, where is the capital city of China. You can not image a 100 square meter store will cost ¥600,000. In this location, only luxury brands could afford the rental fee. That’s the most important reason why Starbucks closed in Guomao Beijing.

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3 thoughts on “The first Starbucks store in China closed

  1. Clearly, either local Chinese or foreign chain stores have not prepared enough for the sharp increased rent fee in China, especially in commercial center in big cities like Beijing.—ZUOS

  2. Opps, I think it is a bad news for people working around there. The problems caused of the rent is not just appeared in Beijing, Shanghai, Guangzhou, the first-tier cities. This is common issues happened in the other cities. Meanwhile, along with the economic development. the salary, raw materials, rent and many other expenses are increasing unbearable, these caused many investor hesitated to enter the market.

  3. Wow… I didn’t notice this news. It is kind of surprising to me, because as far as I have noticed, Starbucks is still considered a “luxury” coffee shop that offers great environment. I guess the rent is yes indeed very crazy, but I doubt if GOYARD can succeed in that area. In some parts of Guomao, the rent is so much higher than the people that it can attract, but business owners are still crazy about that place.

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