New North Point shopping mall will target shoppers from around the world, says developer
As North Point shops plan unveiled, developer says retailers mustn't just cater for mainlanders
Hong Kong retailers should look to diversify and not just target mainland shoppers, a major mall developer said yesterday - a month after a cap was introduced on visits by Shenzhen residents.
Fiona Chung Sau-lin, general manager of Sun Hung Kai Properties' leasing department, made the remark as the company announced details of its plan to build a new shopping complex in North Point.
The Harbour North mall is part of its residential and commercial development on the site of the former North Point Estate.
The government demolished the public rental estate to make way for private development in 2002. In two separate bids in 2012 and 2013, the developer acquired the 310,000 sq ft site for a total price of HK$9.63 billion. A residential estate, hotel and shopping mall will be built there.
Unveiling details of the mall yesterday, Chung forecast that about 80 per cent of shoppers there would be locals, including residents and office workers, while the rest would be visitors from all over the world.
With a total floor area of 220,000 sq ft, the mall will house between 120 and 130 shops. Fashion stores and restaurants will each occupy about 30 per cent of the complex, while watch and jewellery businesses - popular with mainland tourists - will only account for five per cent.
Asked about the new visa policy which allows permanent Shenzhen residents to visit Hong Kong only once a week, Chung said it was still too early to tell if it would have any impact on the city's retail sector.
"Conventionally, the retail sector has a business cycle and May is not a high season for shopping, so we can't directly compare" this month's sale figures with last month, she said.
"In fact, the consumption power of local residents should not be overlooked. Don't just target travellers from mainland China. We also need to think of ways to appeal to visitors from Southeast Asia, Taiwan, Singapore, Europe and America."
At present, Sun Hung Kai runs more than 20 malls across the city, with a total floor area of over 10 million sq ft.
Harbour North will be opened in two phases, one in the second quarter of 2017 and another in the first quarter of 2018.
According to the latest official statistics, the total value of retail sales in Hong Kong stood at HK$38.4 billion in March - a 2.9 percentage point decrease on the same month last year. After taking out the effect of price changes, sales volume increased by 0.8 per cent year on year.
Mariana Kou, senior investment analyst at equity broker CLSA, warned that the mainland's plan to reduce import tariffs and review consumption tax could also be bad for Hong Kong's retail sector, with details yet to be announced.