Hong Kong Shows Signs of Retail Rebound

·2 min read

SHANGHAI — Hong Kong‘s retail market is showing signs of revival.

The city’s premium shopping mall Harbour City saw more than 70 store openings in the first three quarters of 2022, which included a Dior flagship, the biggest store in the city.

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Miu Miu, Salvatore Ferragamo, Casa Loewe, Lanvin, Patek Philippe, and Breitling also opened stores in Harbour City this year.

Harbour City revealed that the shopping center expects to see a total of 100 new tenants this year.

Piaget and Van Cleef & Arpels are some of the brands planning to open stores at the mall.

According to the latest half-year report from Wharf Reic, the parent company of Harbour City, retail revenue at the luxury shopping destination increased by 1 percent. Operating profit rose 6 percent compared to the same time last year. For the first eight months of 2022, weekend and holiday traffic increased 10 percent year-over-year.

With strict COVID-19-related border controls intact, positive sales results are mostly propped up by rising local demand.

According to provisional figures released by the Census and Statistics Department, in July, retail sales value rose 4.1 percent year-over-year to 28.3 billion Hong Kong dollars, or $3.6 billion, reversing a two-month decline.

July sales of watches, clocks and valuable gifts jumped 28.3 percent in value, while apparel retail sales value rose 3.7 percent. Online retail sales value increased 8.6 percent year-over-year to 2.2 billion Hong Kong dollars, or $280 million.

According to local governmental officials, the second round of consumption voucher schemes that started in August and an improving job market are expected to stimulate consumption in the coming months.

Continued retail revival also hinges on how soon the financial hub will see the return of global and mainland China shoppers.

“Tighter financial conditions and development of the local epidemic will also have bearings on the performance of the retail sector,” said a government spokesperson.

In early August, Hong Kong relaxed quarantine rules to a three-day hotel quarantine, down from seven days. Visitors must then complete a four-day self-monitoring at home.

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