Thursday, June 13, 2024
HomebusinessCompaniesWharf sees best years ahead for Hong Kong’s retail industry as sales...

Wharf sees best years ahead for Hong Kong’s retail industry as sales rebound

BusinessCompanies

Best years ahead for Hong Kong retail industry as patience needed for post-Covid recovery, Wharf group says

Retail sales have rebounded by about 20 per cent on average this year through August, after border reopening, driven by government incentivesWharf group, a major retail landlord, says patience is needed for consumption habits to normaliseRetailingPeggy SitoPublished: 8:30am, 3 Oct, 2023Why you can trust SCMP

Hong Kong’s retailing industry will need more time to recover its high-water mark from a decade ago after the Covid-19 pandemic resulted in years of isolation and disrupted consumer spending habits, according to the Wharf group, a major retail and commercial landlord in the city.

Sales values have risen this year by almost a fifth on average per month, aided by border reopening, government data showed. The recovery came despite weaknesses in the local stock and property markets and interest-rate concerns. Higher rents for prime high-street shops and shopping centres suggest confidence is growing.

“I’m sanguine about the immediate future,” chairman Stephen Ng Tin-hoi said in an interview. “Hong Kong was isolated for three and a half years from mid-2019, so I am not surprised it will take a little while for [consumption] habits to return to normal.”

Retail sales rose 13.7 per cent to HK$32.4 billion (US$4.1 billion) in August from a year earlier, slowing from an annualised 16.7 per cent gain and a 19.5 per cent increase in June, according to official data. Sales peaked in January 2014 at HK$54.5 billion and generated as much as HK$48.1 billion in January 2019 before the Covid-19 outbreak.

RELATED ARTICLES
- Advertisment -

Most Popular