Hong Kong’s largest mall operator says retail sales are recovering
Owner of Hong Kong’s Harbour City and Times Square shopping malls records 12pc rise in total revenue to HK$20 billion for the six months
Wharf Holdings, which operates Hong Kong’s largest shopping mall, said luxury brand sales have bottomed out after retailers slashed prices to offset the slump in the number of mainland tourists.
“In June and July, some high-end brands saw sales declines narrowing or even improving on a yearly basis, ” vice chairman Doreen Lee Yuk-fong said while announcing the interim results on Wednesday.
Despite the challenging economic environment, Lee said foot traffic improved by 10 per cent on a yearly basis during the first six months at its flagship Harbour City mall, Hong Kong’s largest shopping complex, in Tsim Sha Tsui.
“We have put a lot of effort into boosting traffic, including promotions in other Asian countries, such as Philippines and India, to offset the losses incurred by brands from offering discounts,” Lee said.
“We are cautiously positive about future market prospects,” she said.
The Hong Kong conglomerate with interests in property, infrastructure and telecommunications, posted better-than-expected core interim profits on higher rental income and property sales in the mainland.
Underlying profit, excluding fair value and exchange factors, rose 14 per cent to HK$5.97 billion, while revenue grew 12 per cent to HK$20.02 billion for the six months.