Local, overseas retail operators help improve property sector

Local and international retailers have taken advantage of the prevailing low rentals to open shops, providing a relief to the retail property sector.

Property consultant CB Richard Ellis said retail sentiment improved with the stabilising economy and the recent increase in the number of tourist arrivals.

In the first half of this year, a number of international retailers had taken advantage of the lower prevailing rents to establish an initial presence in Hong Kong, it said.

For example, US-based international retailers Gateway Computers and Outback Steakhouse were planning to launch their first flagship operations in Hong Kong within the second half of the year.

CB Richard Ellis said it was common for international retail operators to choose relatively large shop spaces within major shopping centres as the location of their first stores.

'The choice of such large shop spaces permits greater flexibility in positioning shop displays to maximise customer attraction,' it said.

'The choice of a shopping centre in a prime location, furthermore, tends to lower the risk that a retailer's first store will fail to achieve impact.' Prime shopping centres provide the exposure to heavy flows of pedestrian traffic, the guarantee of professional management and the assurance of positioning within a merchandising mix.