Menswear giant opens flagship operation on pedestrian mall
Shanghai Daily news
Youngor Group Co Ltd, one of China's biggest menswear manufacturers, opened
its Shanghai flagship store on the Nanjing Road Pedestrian Mall on
The Zhejiang Province-based company spent 152 million yuan
(US$18.77 million) to buy the building, which used to be owned by Zhongbao
Yinlou, a jewelry company.
It was Youngor's first real estate purchase in
Shanghai. The company formerly rented space in shopping malls to operate its
businesses in the city.
"We have been thinking about owning a store in
Shanghai, the nation's biggest commercial city, for a long time," said Li
Rugang, board chairman of Youngor Group. "The new store is in a very ideal
location, which will help lift Youngor's brand image in Shanghai."
eight-floor building is near the Henan Road M. Metro Station and occupies 5,970
square meters of floor space. The company said it paid 25,460 yuan per square
meter, while the price for some nearby shopping malls has exceeded 70,000 yuan a
square meter, according to a source familiar with the situation.
said the building's former owner offered the low price because it decided to
retreat from the retail jewelry market.
Youngor is using the first two floors
for its flagship store and rents office space on the fourth and fifth floor to
several other firms.
A Youngor design center is also in the building's
blueprint, company officials said.
Youngor Group reported sales revenue of 15
billion yuan this year and a profit of about 1 billion yuan. It posted earnings
of 8.9 million yuan in 2004, according to Li.
The company also has arranged
for space for its clothing stores in more than 100 retail locations around the
country over the past few years, most of which are in Zhejiang Province.