Listed fashion retailer Joyce is to move out of its flagship store in Central to a cheaper location in an attempt to cut costs - the latest victim of the downturn in the retail market. It is understood Joyce could save up to 40 per cent of its rent after it closes its outlet at The Galleria, 9 Queen's Road Central, and moves to New World Tower, Central, in April. Property agents said the company had signed a long-term lease for $1.3 million a month, for just over 15,000 square feet in the centrally located, but less upmarket, building. The agents said this was $1 million a month less than the $2.3 million it was reportedly paying for space at The Galleria. Joyce managing director Roberto Dominici refused to talk about the deal other than to say the new rent would be less than Joyce was now paying. Analysts said they knew little of the deal, but that it represented good news for Joyce. 'The fact they are moving is understandable, given the current conditions,' one analyst said. Local retailers have been battered by the economic downturn affecting the region, with sales plummeting all over the territory. Tenants in several shopping centres have petitioned their landlords to cut their rents by up to 40 per cent, as a result of the downturn. Many merchants said their sales had more than halved. Joyce also has announced the closure of a Bangkok outlet. Last month, its share price tumbled amid speculation the company was in trouble with its bankers. Company officials denied this, but admitted they were not immune from the difficult economic conditions. Joyce will lease space on the ground floor and basement of New World Tower, the same space which once was occupied by American Express. Mr Dominici said the new Joyce outlet would enjoy higher visibility 'and will be on street level, very close to Emporio Armani'. Property agents said the deal also involved a six-month rent-free period for the high-end retailer. They said Joyce decided to move out of the 9 Queen's Road premises after failing to renegotiate the rent.