Cosmetic brands cash in on tourist influx as they lead Q3 retail expansion charge
Notable leasing deals include those by Bonjour and NYX Professional Makeup.
Tourism-oriented retailers such as cosmetic and personal care brands dominated leasing activity in Q3 as they took advantage of the steady uptrend in visitor levels to boost sales, according to real estate consultant CBRE.
Local cosmetics chain Bonjour continued to expand its presence after snapping up 2,000 sq ft space on Lockhart Road in Causeway Bay and reopening its Yun Ping Road location whilst US-based NYX Professional Makeup also leased a 1,500 sq ft unit along Sai Yeung Choi Street South.
Also read: Cosmetics put a glow on Hong Kong's pallid retail scene
Retailers of personal care goods also ramped up their expansion plans in Causeway Bay led by Mannings which leased 4,300 sq ft shop in Lockhart Road for nearly $1m per month and another shop on Pak Sha Road. This adds to its aggressive acquisition strategy that counts the takeover of a pharmacy shop next to its existing unit on Haiphong Road in Tsim Sha Tsui.
“Sales of tourist-oriented goods such as cosmetics, healthcare and watches & jewellery are expected to remain upbeat,” CBRE said in a report. “Retailers operating in these categories will remain active in looking for leasing opportunities in popular tourist locations.”
This bullish outlook bucks the cautious sentiment taken by retailers in other sectors towards short-term leasing activity, added CBRE.
The steady expansion levels led by cosmetics and care brands pushed down vacancy levels on Tier I streets in core retail districts especially in Causeway Bay and Mong Kok to fall from 4.1% to 3.6% in Q3. However, rents across districts remained flat and shopping mall rents held steady.
Photo from Docuboa323 - Own work, CC BY-SA 3.0