Hong Kong retailers continue expansion
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A vast majority Hong Kong retailers in a survey say they plan to open new stores during the next year, according to property company JLL.
Albeit a small sample base of 40 retailers, 83 per cent of international and local retailers told JLL they will expand – a significant increase form the 62 per cent of a similar survey a year ago.
“There is a great deal of positivity in the market at the moment,” said James Assersohn, director of Asia-Pacific retail at JLL. “Retailers from almost all sectors are seeing strong and sustained growth in their sales which will lead to them invest more into the market.”
Hong Kong retail sales rose 13.7 per cent during the first five months of this year and there are no signs of the rebound slowing down. However, the rise is being driven by luxury goods and jewellery, with growth in more staple products like food and furniture in the mid-single digits.
“The luxury sector is currently the biggest winner, led predominantly by the mainland Chinese tourists,” said Assersohn.
Almost all of the retailers questioned by JLL said they had experienced an increase of sales during the first half of this year and predict they will continue to grow by more than 10 per cent in the second half.
Questions & Answers
Q.What is driving the current growth in Hong Kong retail sales?
What is driving the current growth in Hong Kong retail sales?
The rise in sales is primarily driven by the luxury goods and jewellery sectors. Growth in more staple products like food and furniture is only in the mid-single digits, indicating a strong performance from high-end categories.
Q.Which specific group of consumers is largely responsible for the strong performance of the luxury sector?
Which specific group of consumers is largely responsible for the strong performance of the luxury sector?
The luxury sector's success is predominantly led by mainland Chinese tourists. Their spending habits are a significant factor contributing to the strong growth experienced in this particular retail category within Hong Kong.
Q.What sales growth are retailers expecting for the second half of the year?
What sales growth are retailers expecting for the second half of the year?
Retailers questioned by JLL anticipate their sales will continue to grow by more than 10 per cent in the second half of the year. This follows an increase in sales they experienced during the first half.