Super regional centres rule the retailing roost
March of luxury brands seems unstoppable amid the changing face of outlets as city moves to cater to the influx of mainland shoppers
So-called super regional centres are the most prominent mall formats, usually located in prime commercial or tourist areas and with a floor area of more than 700,000 square feet and accommodation for at least 200 retailers, with three or more anchors.
In this type of mall, the march of apparel retailers, particularly luxury fashion outlets, seems unstoppable, and their tenant mix continues to emphasise this trade at the expense of other anchors/tenants.
In the circumstances we believe the jewellery and watches sector has stabilised for the time being at around 5 per cent of floor area.
Typically, regional centres are 600,000 to 1 million sq ft and located in well-established suburbs, offering a mix of anchors and mini-anchors. Regional centres in the New Territories are shifting their trade mix to meet mainland demand and this will inevitably mean more apparel. With greater numbers of same-day visitors from across the border (compared with overnight visitors), provision of convenience retail may also increase over time, particularly cosmetics and pharmaceuticals in centres within easy reach of the border.
Located in larger residential suburbs and still with a strong convenience bias, district centres cater to the mass- to mid-market.
At a district level, the trade mix is expected to remain relatively stable over the short term, although larger, better-located centres may try to reposition themselves as sub-regional malls where market opportunity allows.
Lacking the allure of the much larger regional and super-regional centres and without the convenience of neighbourhood malls, this segment may be most vulnerable to e-tailing over time. The internet is a particularly effective means of undertaking the type of comparison shopping that occurs at a district centre and many businesses are already well represented on the web.
