Stores say space favours big brands
Local chain stores say they are being squeezed out of shopping centres in prime districts as landlords choose to lease space to international brands in a bid to upgrade the image of their shopping centres.
However, landlords disagree, saying they do not give international brands preferential treatment.
'This situation has been growing steadily worse in the last one to two years,' said Lawrence Ng Man-kit, a deputy managing director of local footwear wholesaler and retailer Mirabell International Holdings. 'We were forced to move shops in Causeway Bay and Tsim Sha Tsui after our tenancies expired.'
He said other local brands and retailers were also finding it difficult to rent prime space because landlords had reserved the top locations for international brands. 'Despite the fact that turnover of some local restaurants exceeds landlords' requirements, the restaurants have also been forced to move out.'
Joe Lin Chi-ho, a director of retail services at CB Richard Ellis, confirmed a trend among landlords in prime shopping districts towards favouring international brands as tenants. 'Despite the fact that local retailers are willing to pay the same rents as the international brands, the landlords would still prefer to rent to an overseas retailer.'
He said local casual wear and footwear retailers suffered the most and many had been forced to move out of Causeway Bay and Tsim Sha Tsui.
Mr Ng added: 'The same trend is evident in second-tier shopping centres.'
The complaints were disputed by Leng Yen-thean, a general manager at Times Square, who said international brands did not get higher priority when tenants were selected. 'What we are concerned about is whether the customer profiles of the tenant align with the mall's positioning and also their pricing and the type of products offered.'
Maureen Fung, a general manager for leasing at Sun Hung Kai Real Estate Agency, said tenants were chosen according to the theme of the shopping centre.
