Foreign Brands Building in Hong Kong

Hong Kong’s retail market is struggling. August marked the sixth month in a row of declining sales, down 10.1% year-on-year, with locals spending less and travel increasing by nearly 30%.

Tourist-related sales in clothing, footwear, and luxury items saw double-digit drops, while food and supermarket sales also fell. Despite the slowdown, some foreign brands are expanding.

The Swatch Group leased a prime spot in Tsim Sha Tsui at HK$400,000 monthly, while Abercrombie & Fitch is opening new stores in Causeway Bay and Shatin. Mango is also moving in, taking a 19,000 sq ft space in Central.

Investment activity picked up after a U.S. rate cut, with a Nathan Road property selling for HK$200 million, signalling confidence in prime street shops.

Landlords are adjusting rents to keep occupancy rates high, and investors remain optimistic about core locations. But most brands are still cautious as the market adapts to new consumer patterns.