Ten years after it began serving espressos to shoppers on King Street, Cino to Go has closed the doors on its landmark store, having failed to negotiate a renewal of its lease.
Ten years after it began serving espressos to shoppers on King Street, Cino to Go has closed the doors on its landmark store, having failed to negotiate a renewal of its lease.
The cafe is the latest in a series of non-fashion retailers to exit the strip, joining Greenhill Galleries and Aboriginal art gallery, Creative Native, which moved to Forrest Place last month.
Clothing store Realm Man Woman is due to join the exodus, after six years on the street, because it could not afford a scheduled rent increase.
Owner Paul Brooks said he would have to move out by the end of July, although he was yet to find another suitable site due to the lack of vacant retail space in the CBD.
He said the street was becoming unaffordable due to the arrival of luxury fashion brands.
"The price is too high for your average, run-of-the-mill retailer. [Landlords are] holding out for the national and international brands," Mr Brooks said.
According to real estate agent Churchill Knight, rents in King Street are currently at more than $2,000/sqm, although WA Business News understands that figure has reached $3,500/sqm for some newer tenants.
With Tiffany & Co, Louis Vuitton and Gucci setting up on the street, rents have increased rapidly for tenants such as Realm Man Woman, which is paying three times the rate it was 12 months ago.
One retailer told WA Business News that, although their next rent review was not immediate, an increase of that magnitude would leave them with little choice but to move.
"Eventually, it's only going to be the international chains and stores that will be able to stay," she said.
While the trend is evidence of the state's economic strength, several businesses have expressed frustration at the number of empty shops on King Street.
One long-term fashion retailer said this had contributed to a decline in sales since the start of the year, while with the high level of construction in the area had discouraged shoppers from coming into the city.
There are at least five King Street shop fronts vacant at present, although luxury brand Prada and Sydney label Wheels and Dollbaby are both believed to be moving in soon.
And the street continues to attract attention from international brands, with one fashion house understood to be eyeing off a site at on the corner of King and Wellington streets, currently being renovated.
The site is fielding offers from three potential tenants, at a rent of more than $1,000/sqm.
Perth Star Newsagency, on the corner of Hay and King streets, said it could not comment on its plans until it received documentation regarding its lease.
Dome Coffees Australia chief executive officer Nigel Oakey, who also manages the Cino to Go chain, said it was inevitable that smaller tenants would eventually be forced out.
"Every operator on the street whose lease comes up, who is not a premium or luxury goods retailer, is going to face this issue," he said.
