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Prime street shop and shopping mall rents fell heavily in the first quarter, down by 44% and 31% YoY.
- Many retailers are reporting a fall in sales of 50% to 80% over the first quarter with tourist-focused trades worst affected.
- Some retailers have closed all or part of their operations permanently or temporarily and staff are being laid off.
- Prime street shop landlords are proving more flexible and rents fell by 14% QoQ in the first quarter, down by 43% YoY.
- Some mall landlords are offering temporary rent relief of 30% to 50% discounts on a rolling monthly basis.
- As government introduces new measures to tackle a second wave of infections, retailers and F&B face a tough time at least over the next month or so.
- When will demand (mainland shoppers) return? Which sector will rebound fastest? How will retail be reshaped longer term? These are the questions which have yet to find clear answers.