In recent news, it was reported that the Trump Organization has renegotiated Gucci’s rent for their flagship store in Trump Tower, resulting in an estimated $7 million annual reduction. This move has been deemed as a win for the organization, as they were successful in “taking the artist of the deal to the cleaners.” In this blog post, we dive into the details of this deal and its potential implications on the luxury retail industry.
Introduction: Gucci Took ‘Artist Of The Deal To The Cleaners’: Trump Org Cut Store’s Rent By Estimated $7M A Year
Gucci’s storefront in midtown Manhattan, owned by former President Donald Trump at the base of Trump Tower, has faced considerable challenges due to the market shift caused by online shopping and the Covid-19 pandemic. Forbes Senior Editor Dan Alexander recently discussed this issue with Brittany Lewis in Forbes Talks. Forbes has published the full story on this matter. In this article, we’ll delve deeper into the impact of these issues, along with other relevant topics such as Trump’s major revenue streams, Forbes subscription benefits, and more.
The Dramatic Drop In Gucci’s Rent
One of the most significant effects of the pandemic has been the plummeting of rents across Manhattan. The annual rent for Gucci’s location at Trump Tower plummeted from $22 million to $15 million due to the pandemic. Unsurprisingly, this has drastically impacted Trump’s major revenue streams.
The Deal That Went Bad
According to sources, the Trump Organization argued that Gucci was in default of its lease clause that required it to stay open for business seven days a week, and thus renegotiated the lease to its advantage. However, some experts believe that this is a dubious legal argument by the Trump Organization. Forbes even reported that the whole deal was an attempt to regain Trump’s pristine reputation as a negotiator after he lost out on a major deal with the NFL. Forbes regards this incident as “a small takeaway from Donald Trump’s singular business prowess.”
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Gucci’s annual rent at Trump Tower reduced considerably due to market shifts and the pandemic season. The Trump Organization negotiated the lease to its advantage. Experts express that this whole move by Trump is just an effort on his part to make up for the deal he lost out on earlier. You can subscribe to Forbes to receive unmatched content and firsthand access to leading figures and their ideas in the industry.
Is Gucci’s storefront in midtown Manhattan owned by Donald Trump?
Yes, the storefront is owned by former President Donald Trump.
How has the pandemic affected Gucci’s revenue streams?
The pandemic has fractured the market shift towards online shopping, which has led to a significant drop in Gucci’s rent, impacting one of Trump’s major revenue streams.
What did Forbes report regarding the deal between Gucci and the Trump Organization?
Forbes reports that the deal was an attempt to regain Trump’s pristine reputation as a negotiator after losing out on a significant deal with the NFL.
What is the goal of Forbes?
Forbes aims to provide its subscribers with unmatched content and firsthand access to leading figures and their ideas in the industry.
How can you access Forbes’ exclusive benefits?
You can subscribe to Forbes to access unlimited content, events with leading thinkers, doers of thought, and forward-thinking perspectives on the world of business and finance.