Fashion
Sa Sa International Holdings (0178), the cosmetics and skincare retailer, said yesterday retail and wholesale turnover for the first quarter ended June 30 increased by 24.8 percent over the same period the year to HK$2.11 billion.
The retail and wholesale turnover in Hong Kong and Macau markets increased by 27.7 percent to HK$1.8 billion, while same-store sales increased by 25.3 percent.
This was mainly driven by a 27.5 percent increase in the number of transactions from mainland tourists, which also led to a 14.5 percent growth in the volume of transactions.
The average sales per transaction of local consumers and mainland tourists increased by 8.1 percent and 7 percent respectively, Sa Sa reported.
Hong Kong’s retailers have forecast their turnover in the second half to grow by 10 percent year on year, JLL found in a recent survey.
About 83 percent of the international and local retailers are planning to open new shops in the city over the next 12 months, a significant jump from 62 percent as recorded a year ago. JLL surveyed 40 retailers and retail landlords in June and found that more than 90 percent of the respondents stated their retail sales in the first half of 2018 fared better than those in the previous year.
Retailers from almost all sectors are seeing strong and sustained growth in their sales which will lead to them investing more into the market, while the luxury sector is currently the biggest winner, led predominantly by the mainland tourists, said James Assersohn, director of Asia Pacific Retail at JLL.
“However, we also see locals increase spending which provides a deeper and more sustainable growth trajectory for retail businesses here,” James added.
Meanwhile, it is worth noting that changing consumption patterns and shopper profiles fueled by millennials and generation Z have also led to greater demand for mass and mid-market brands, serving as a significant boost to local spending, said the survey. It is expected that the rents of high street shops and prime shopping centers to grow in the range of 0 to 5 percent for the full year, said Terence Chan, Head of Retail at JLL in Hong Kong.
For the local industrial and commercial property market, property agency Midland IC&I (0459) forecast 10,000 transactions will be recorded in 2018, rising by 8 to 10 percent year-on-year, which will set a new record high.
The turnover for the year is expected to decline 0 to 5 percent mainly due to uncertainties including the trade war between China and the United States and fluctuations the local stock market.
Midland IC&I forecasts that industrial and commercial properties will record a turnover of HK$130 billion and HK$160 billion respectively for the second half and the full year.
