Retail sales drop 7.1% YoY amidst consumption pattern shift

Mainland tourists opt for experiential and cultural consumption.

Retail sales dropped 7.1% year-on-year (YoY) as of November 2024 due to mainland tourists opting for experiential and cultural consumption despite an increase in arrivals by 34%, according to Colliers.

Meanwhile, high-street rent remained resilient with a rental growth of 3.1% YoY, as brands continue to relocate or expand to prime locations.

Vacancy rates across four core districts improved with an overall decrease of 0.8% quarter-on-quarter, reflecting a positive trend.

“The year will see a significant influx of new supply, totalling 4.7 million square feet, the highest in the past twenty years. Given the evolving preferences of tourists, we advise landlords to prioritise cultural and experiential retail to enhance foot traffic, “said Kathy Lee, head of research and retail consultancy at Colliers Hong Kong.