Over 15,000 Hong Kong Shops May Close Without Rent Relief
- Retailers say rent reductions of 50% or more needed to survive
- Hong Kong is dominated by a handful of powerful developers
A clothing store stands between shuttered retail spaces covered in rental advertisements in the Tsim Sha Tsui district in Hong Kong on April 21, 2020.
Photographer: Roy Liu/BloombergFrom luxury boutiques to mom and pop stores, Hong Kong’s retailers are hurting. Unless landlords can offer more relief, one in four could disappear by December if sales don’t improve, putting an end to the city’s reputation as a shopping mecca.
That’s the gloomy prediction of Hong Kong Retail Management Association Chairman Annie Yau Tse, who says the rent reductions that came after public pressure on landlords in February aren’t sufficient. Most are only willing to cut rents by 10% to 20%, far from the retail industry’s demand of 50% or more. The association estimates there are around 62,400 retail stores in the city.