( 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.