Revamp pays off for Times Square
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A revamp of Hong Kong’s iconic Times Square shopping centre led to an 11 per cent rise in retail sales to a record HK$10.5 billion (US$1.35 billion) last year.
Owner, The Wharf Holdings, said its overall revenue from the mall rose 21 per cent to HK$2.544 billion (US$328 million) and operating profit rose 24 per cent to HK$2.276 billion (US$293 million).
Occupancy maintained at virtually 100 per cent.
Times Square, prominently located at the heart of the Causeway Bay retail precinct, is among the most successful vertical malls in the world with 17-levels of shopping and a direct connection to the underground Mass Transit rail system.
It also features one of the few open Piazza squares areas of any mall in Hong Kong.
“The enhanced Times Square has pushed the bar to new heights and caters to higher levels of service, sophistication and entertainment demands from a broader range of shoppers. This sparked new growth in retail sales and revenue in 2014,” said The Wharf Holdings.
New anchors and coveted luxury brands added in 2014 included Chanel, Louis Vuitton, Dior Homme, Fendi and De Beers. Culinary offerings including Yun Yan, Pak Loh Chiu Chow Restaurant and Enmaru, the top-ranked Izakaya style Japanese debut as well as Laduree Tea Room, the renowned French café’s debut, which The Wharf says have met with encouraging responses from customers.
The state-of-the-art five screen cinema Cine Times spanning the 12th to 14th floors have helped drive foot traffic, boosted sales and created value.
The trade mix was further enhanced with addition of a diverse range of tenants from leading high-end brands such as Celine, Jimmy Choo and Hugo Boss to popular mass brands such as Topshop and American Eagle Outfitters. Gucci is set to open a vertical duplex store by mid-2015 and some tenants on the atrium floors will relocate with new store designs.
The creation of a semi-retail zone at the upper floors further strengthened the tenant mix. il Colpo opened a 4800 sqft and Sulwhasoo opened its first 10,000 sqft beauty and Spa centre on Hong Kong Island.
Questions & Answers
Q.What specific changes did Times Square implement to achieve its increased sales and revenue?
What specific changes did Times Square implement to achieve its increased sales and revenue?
Times Square added new anchor luxury brands like Chanel and Louis Vuitton, new culinary offerings including Laduree Tea Room, and a five-screen cinema. They also enhanced the trade mix with high-end and popular mass brands, creating a semi-retail zone on upper floors.
Q.Which financial metrics saw the most significant improvement after the revamp, and what were the figures?
Which financial metrics saw the most significant improvement after the revamp, and what were the figures?
Overall revenue increased by 21 per cent to HK$2.544 billion, and operating profit rose by 24 per cent to HK$2.276 billion. Retail sales also saw an 11 per cent rise, reaching a record HK$10.5 billion.
Q.What is the current occupancy rate of Times Square, and how does its location contribute to its success?
What is the current occupancy rate of Times Square, and how does its location contribute to its success?
The occupancy rate was virtually 100 per cent. Its prominent location in Causeway Bay, direct connection to the MTR, and status as one of the few vertical malls with an open piazza in Hong Kong contribute to its success.