Having seen dramatic declines since 2013, prime street shop and shopping mall rents seem to have found a floor but this may only be temporary.
- Retail sales have for the first time recorded 11 consecutive months of double-digit decline amid the prolonged social unrest and the global coronavirus pandemic.
- Many luxury and mid-range retailers are struggling to maintain their P&Ls and offloading unprofitable stores.
- Rental declines stabilised in both the prime street shop and shopping centre segments, falling by only -1.7% and -0.8% respectively over Q2/2020.
- Foot traffic in shopping malls showed some signs of improvement in May and June fuelled by pent-up demand from local consumers.
- A slower-than-expected recovery in the tourism market means that a more balanced approach to local consumers and mainland tourists is warranted moving forwards.
- Retail categories such as lifestyle brands, health-related products and affordable family-friendly retailers which appeal to domestic shoppers are beginning to have a stronger presence in the market.