TAIPEI (Taiwan News) — Swedish fast-fashion retailer H&M will close its flagship store in Taipei's Ximending shopping area at the end of this year as it adjusts its retail footprint in Taiwan.
The company confirmed the closure to CNA and said the decision followed lease expiration and negotiations with the landlord. It said it still operates 13 stores in Taiwan and plans to continue expanding at suitable locations.
H&M said Taiwan remains an important market in the region with strong growth potential. It added that it remains confident in its operations and will continue to optimize its store portfolio while seeking new locations for expansion.
The Ximending store, located in one of Taipei’s busiest shopping districts, is H&M’s largest outlet in Taiwan and was previously its flagship store for Asia, according to CNA. The closure ends a long-standing retail presence at the site.
Market observers said the area has seen shifts in visitor patterns since the pandemic, including changes in tourism flows and local consumption habits, according to CNA. Higher rents and evolving retail demand have also affected international apparel brands’ store strategies.
SET News reported that the site was previously occupied by Eslite 116, which closed in 2015 amid rising rents. H&M moved into the site the following year, where it was then promoted as its largest flagship store in Asia, with a reported monthly rent of NT$12 million (US$374,000).
The landlord later sought to raise the rent by NT$5 million to NT$17 million per month, according to SET News. Real estate brokers said such levels are very high under current market conditions, and the store’s roughly 2,000-ping (6,611-square-meter) size limits potential single-tenant operators.
Despite the high rent, the location next to Ximen Station Exit 6 in a major tourist district continues to attract retailer interest, per Business Today. Several domestic and international brands, including sportswear and fast-fashion companies, have reportedly made inquiries.
