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Mainland Chinese brands to lead retail leasing in troubled Hong Kong market
Mainland Chinese and emerging brands are expected to be the most active players in Hong Kong’s retail property leasing in the coming months, as most retailers remain cautious about the prospects of the beleaguered sector despite an uptick in tourist arrivals, according to analysts.
Hong Kong’s retail sales fell for the tenth consecutive month in December, bringing the full-year decline to 7.3 per cent, with total sales valued at HK$376.8 billion (US$48.5 billion), according to the latest official data.
“It is anticipated that the retail market will undergo significant restructuring, with some brands likely to be eliminated due to market competition, leading to high vacancy rates,” said Andy Kong, chief sales director of Midland Shops.
“On the positive side, the vacant shops present opportunities for emerging businesses. It is expected that more new brands will enter the market and rent shops, taking advantage of the decline in rents.”
Previously, mainland Chinese brands entering or expanding in Hong Kong were mostly food and drink operators, such as Luckin Coffee – which opened locations in Tsim Sha Tsui, Mong Kok and Sha Tin – and hotpot restaurant Little Sheep in Sham Shui Po.
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