Swire Properties said the declining sales at its three shopping malls in Hong Kong have bottomed out in the third quarter, as new restaurants, retail outlets and creative in-mall entertainment attracted shoppers and improved pedestrian traffic. Sales at Pacific Place mall in Admiralty fell 15.3 per cent in the first three quarters of the year, while sales at the Citygate Outlets mall in Tung Chung declined 11.2 per cent, and sales at Cityplaza in Taikoo dipped 4.2 per cent, according to a filing to the Hong Kong Stock Exchange. In the first six months, Pacific Place reported a sales drop of 17 per cent, Citygate declined 13 per cent, while Cityplaza fell 4.1 per cent, Swire said. “The retail market remains challenging, though we have observed that the overall sales decline is less severe than before,” said Swire Properties’ spokesperson. A better-than-expected third quarter is good news for Swire’s parent Swire Pacific, as its airline unit Cathay Pacific Airways Ltd. continues to be weighed down by declining profits in the second half caused by overcapacity and competition. Pacific Place has seen some improvements in traffic, as a result of a number of creative in-mall activities, and the addition of new restaurants and retail shops, Swire Properties said. “We saw improvements in the sales results in September with a much narrower sales decline. The redemption campaign which we ran during the period also resulted in good response. These are encouraging indicators and we hope this positive trend will continue through the fourth quarter,” said the spokesperson. ‘Looking ahead, more exciting attractions will be rolled out in the fourth quarter, including the opening of four new eateries in the next few weeks, and the completion of our AMC Cinema in December,” the spokesperson said. Some shops at Citygate Outlets, including the food court and cinema, were closed from September to facilitate the mall’s renovation and upgrading works. Citygate continues to enjoy very strong traffic which can be attributed to the opening of new food and beverage and retail outlets. “We are developing a new retail complex at the adjacent site and will enhance visitors’ experience by introducing new brands and exciting F&B and entertainment concepts,” the spokesperson said. The new development is expected to be completed in 2018. Swire Properties shares fell 0.4 per cent to HK$22.05 in Hong Kong while Swire Pacific fell 3.4 per cent to HK$78.50.
