Hong Kong retailers eye expansion as sales rebound continues
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.