Retail in Asia

In Markets

Hong Kong retailers generally optimistic about next 12 months

Savills latest retail report for Hong Kong outlines that the retail market in the third quarter was supported by moderate growth in visitor arrivals numbers and a slowing in the rate of decline in retail sales volume.  In summary:

  • Visitors from Mainland China recorded a 5.8 per cent MoM growth in August and an increase of 2.6 per cent YoY over the first eight months
  • The Golden Week effect will further strengthen visitor numbers in October and luxury retailers reported brisk sales during the holiday
  • Retail sales volumes are expected to bottom out soon as Mainland footfall and local consumer confidence return
  • Prime street shop rents recorded a strong rebound and rose by 4.2 per cent in Q3 after a 1.8 per cent increase in Q2
  • Strong consumer demand was noted for electrical goods and jewellery, and retailers from these sectors are looking for new opportunities in prime locations
  • Given weak domestic markets in Europe and the US, international brands are expanding aggressively in Asia, with Hong Kong seen as a safe first step into the China market
  • Shopping centre landlords found creative ways to draw Mainland footfall during Golden Week with offers of free travel packages and discounts
  • Shopping centre rents rose by 5.1 per cent in Q3 with malls in Kowloon and the New Territories outperforming