Retail return to temperature pharmacy return

The retail performance is closely related to retail rents. The retail figures are satisfactory. The re-emergence of Wangding Wangcai has brought positive information to retailers. It is believed that the renting in the core area has been more frequent and the rental decline has been suspended.

Shop Ding Caiwang bottomed out rents

Recently, he talked with a senior agent of a store rental agency. During the May 1st Golden Week, he accompanied the international retail brand officials to visit the retail core areas of Causeway Bay and Tsim Sha Tsui in Hong Kong. The market conditions were observed and deployed for future deployment. The agent stated that this year’s Golden Week There has been a rare phenomenon in recent years. There has been a surge of people. Tourists, including gold shops, pharmacies and sports clothing stores, have been flooded with tourists. In the past few years, tourism and retail have been playing a breeze. This year is a time of rejuvenation.

Digitally, retail sales have indeed improved. The Census and Statistics Department summarized the retail performance of Hong Kong in the first quarter of this year. The total value of retail sales from January to March rose by 14.3% year-on-year to RMB 132.222 billion. Jewelry, watches and clocks The value of retail sales of valuable gifts in the first quarter rose 21.7% year-on-year, and drugs and cosmetics also rose 16.9%. In terms of number of people, the Immigration Department’s statistics show that during the first three days of the Golden Week Holidays, the number of visitors from the Mainland for the first two days each exceeded 230,000 visits to Hong Kong, up 20% and 26% year-on-year. Individual brands, such as cosmetics retailer Sasa, have announced recently. In the three days of the Labor Day holiday, retail sales in Hong Kong and Macau rose by more than 30% year-on-year, and the turnover of mainland tourists recorded 41.5% growth. From a number of data, it really reflects the tourism and retailing industry.

Retail rental and retail performance are closely related. According to DTZ data, the four major retail core districts are Causeway Bay, Tsim Sha Tsui, Central and Mong Kok. The rent for the first quarter of this year was at least 40% lower than the peak of 2013, and the fall in Causeway Bay was as high as 56.4. %. However, the rent reduction began to slow at the beginning of last year. On a monthly basis, the rent in the four districts saw a slight decline of 1.7% in Mongkok. The remaining three districts rose or rose slightly on a month-to-month basis. Bottom out.

In the first five months of this year, the leasing activities of commercial shops are actually better than last year. One of the industries with indicators is the pharmacy re-lease shop. At the peak of retail sales, pharmacy rental shops have been extremely active and have significantly contracted in recent years. Until recently, Yee Wo Street in Causeway Bay, Fa Yuen Street in Mong Kok and Granville Road in Tsim Sha Tsui all saw pharmacy rental shops, which more or less also reflected the improvement of business. Reproduce business opportunities.

Good business in Golden Week will surely bring positive information to retailers. Just as Deng Ju-ming, the chairman of the Prince Jewellery Watch and Watch, mentioned that the group’s branches have increased by more than 20% from March to April, which is more ideal than Golden Week. Mainland visitors will not be concentrated in a certain two months and prime time. If business is confirmed to be better, many retailers will be encouraged to re-expand, and rental activities are expected to be more active. Ji Pu believes that it can be digested one by one.

High-end consumer contraction

Is the rental business better, does it mean that the rent has rebounded? It may not be. Looking back at the retail peak period from 2010 to 2013, the number of shop rents increased by multiples. The main driving force came from rushing shops such as international brands and high-end jewellery and watches. When these high-end consumption contracted, even a huge drop in shop rental was recorded. The current retail sales figures are undoubtedly better than last year. However, it should be noted that the current pattern of consumer spending has changed. The consumption of mid-priced goods, including cosmetics, daily necessities and middle-and-down fashion, is mainly different from that of the former brand name. The retailers of price and value goods have always been less able than international brands, and many retailers have only begun to have an intention to expand when they see the current store rents have been pulled back to a relatively reasonable level. According to the agency, the current owner of the shop is also relatively pragmatic. Even if he sees that the retail sales are improving, he will not dare to raise the price sharply so as not to scare the tenants. Therefore, it is difficult for shop rental to rebound significantly. This year will only bottom out and develop steadily.