Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Friday, Mar 29, 2024

Hong Kong Unrest  Causes ‘Worst Ever’ Retail Decline, With Thousands Of Stores Threatened

Hong Kong Unrest Causes ‘Worst Ever’ Retail Decline, With Thousands Of Stores Threatened

Over 10% of retailers in Hong Kong—thousands of stores—could shut down in the next six months, with more than 5,600 jobs set to be lost, as the city faces its “worst ever” wave of store closures and layoffs amid ongoing protests that continue to disrupt Hong Kong’s economy, Bloomberg first reported.
The Hong Kong Retail Management Association (HKRMA) found in a new survey that the outlook for retailers is becoming increasingly dire after months of anti-China protests.

Almost all survey respondents (97%) said they had recorded losses since the citywide unrest began in June: 30% of those also said they would have to lay off an average 10% of employees in the next six months, losing over 5,600 retail jobs in total, while 43% of retailers said they might have to close down completely within six months, according to Reuters.

The survey, released on Monday, covers chain stores and small retailers, encompassing some 176 companies, over 4,000 stores and 89,700 employees in total.

Going into the crucial holiday period in December, which is usually a busy shopping season, the retail industry is at a new low, in part due to a lack of Chinese consumers: “If cash flow doesn’t improve and landlords don’t help, there will be a wave of layoffs and business shutdowns … this will be the worst ever in history,” said HKRMA chairwoman Annie Tse in a press briefing on Monday.

Compared to last year, retail sales fell by 25% in October—the steepest drop on record for the city’s once-bustling retail industry. Sales for December are similarly expected to be at record lows or slip even further, according to Tse.

“Hong Kong’s protests continue to darken the economic picture by deterring tourists and, by extension, sapping retail sales,” says Evan Rees, an Asia Pacific analyst with geopolitical intelligence firm Stratfor. “Exacting particular economic pain, mainland tourists, who account for 80 percent of arrivals, have dropped off sharply due to reports of protesters targeting mainlanders as well as the rising Chinese nationalist backlash against Hong Kong unrest.”

Key background: The pro-democracy protests, which started in June, have thrown Hong Kong’s economy into a recession, with industries like retail, tourism and hospitality getting extremely hard hit by the turmoil. “The retail declines come amid a perfect storm for the Hong Kong economy, which has been dragged down by the U.S.-China trade war, the structural slowdown in China and dampened global demand,” Rees says.

Crucial quote: “Since Hong Kong is part of China, the retail slowdown will be an added factor weighing on Chinese economic growth,” says Nicholas Sargen, economic consultant at Fort Washington Investment Advisors. “It’s part of a bigger story about China that investors are watching to see how developments play out, but it is too early to act on the news.”

Chief critic: Despite the slowdown in some of Hong Kong’s most important economic sectors, its stock market is still an “attractive” investment, Dan Rohr, head of global equity research at Morningstar, recently told Bloomberg. He specifically highlights the consumer, healthcare and education spaces as areas of value.

What to watch for: “Going into 2020, the city's protests show little sign of abating, and the possibility of a direct intervention by Beijing remains ever present,” Rees says. “Given that such protests are set to become the ‘new normal’ in Hong Kong and there is little room for compromise, tourism flows and retail numbers will have difficulty recovering to previous levels.”
Newsletter

Related Articles

Hong Kong News
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
×