Hong kong retail market suffers slowdown

Hong Kong's retail market is unergoing a slowdown following years of booming growth.

The country saw demand for luxury goods climb, thanks to strong interest from tourists from mainland China, which fuelled robust demanad from luxury retailers for prime retail premises. In the recent year, though, the market has suffered a slowdown, due to the changing spending and travelling patterns of Chinese tourists, warns CBRE.

"This slowdown is set to continue and is already affecting the structure of the Hong Kong retail market," the firm's latest report explains. "The increasingly challenging business environment has prompted tourist-oriented retail sectors such as luxury fashion, cosmetics and watch and jewellery stores to become extremely cautious towards expansion. Some operators which have been hit particularly hard have reduced their store footprint by not renewing leases, while others have opted to surrender their spaces well ahead of expiry. The main driver of demand for retail space has now shifted from high-end consumer goods to mid-market brands, a trend which has major implications for retail market stakeholders."