Victoriei avenue loses two more tenants: Alb și Negru and Mariella Burani shops closed
Author: Cristina Stoian
This article appeared today in Ziarul Financiar newspaper 10/09/2010
Two fashion brands, Mariella Burani and Alb și Negru, gave up their commercial spaces from Victoriei avenue the only commercial artery known as a "luxury" one comparable with the great boulevards of European capitals.
If Mariella Burani boutique, brought on local market by Alsa Boutiques, the company which owns the franchise for Max Mara, Ermenegildo Zegna and Pal Zileri, was closed last month due to the financial problems the company globally faced, Alb și Negru gave up the commercial space they were renting near Radisson Blu hotel for the last years .
I renounced at the luxury brand after the Mariella Burani group faced financial problems at a global level and went into insolvency. Though we will keep Marella boutique, close to Mariella Burani, open because this brand is part of a strong group, Max Mara, " said Daniel Rosner, manager of AlsaBoutiques.
Dissatisfying rents
In 2008 Alsa Boutiques enriched its portfolio with two brands of women clothing, Marella and Mariella Burani both represented in stores close to Victoria store on Calea Victoriei.
Even if Rosner says that the reasons for closure were not caused by the Romanian market, many brands renounce at Victoria avenue area because the rents are still considered high, despite the fact that the rents felled by 60% compared to 2008, according to the real-estate consulting company MORE Real Estate Services.
The retail network Alb și Negru controlled by the fashion designer Agnes Thomas and Gabriel Moraru is an ultimate example. According to sources within the company, they gave up this commercial space " due to the inflexibility of owners in terms of rental price, especially since the sales dropped during the financial crisis. Shareholders of Alb și Negru shop could not be reached for comments until the close of this edition.
"It is noticed a significant improvement, which determined luxury brands like Gucci and Emporio Armani to choose two commercial spaces which will be opened at the end of the year ," says Rosner.
According to MORE Real Estate Services Victoria avenue is divided into three zones, two of them very good in terms of trade, and the third, near Victoria square, is a secondary one. "Many retailers have opened here stores in 2007 and 2008 only for publicity. Rather than paying 10,000 or 20,000 euro per month for TV advertising or other media, they choose to open a store that hundreds of drivers will observe each day. After losing considerable amount of money, they realized that a store that cannot cover your costs will be closed "believes Ilias Papageorgiadis , CEO of MORE Real Estate Services.
100 euro / sqm in the bloom years
Another reason for which fashion players withdraw themselves from here is the fact that this area does not really serve the needs of major shopping and the access to parking is difficult.
"Most people with high financial possibilities are not shopping in this area. The traffic is weak and cannot support stores with such high expense. The owners have become more flexible compared with the past, but there are still many who prefer to keep their properties empty in instead of reducing the rental price according to current market trend, "says Papageorgiadis.
Before the financial crisis the rental price for fashion shops was between 100 and 130 euro /sqm/ month, some transactions being done even with 150 Euro/sqm. Real estate consultants said that in 2008 the owners have also requested prices in range of 180-250 euro/sqm.
Another retailer which closed this year another store on the same avenue is Steilmann, who took this decision because its "revenues were not covering its expenses. The retailer's intention is to rent this space.
You can read the original article here:
Calea Victoriei mai pierde doi chiriaşi: magazinele Alb şi Negru şi Mariella Burani, închise