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June 9, 2022

Hong Kong ranks 4th in the Most Attractive Cities for Retailers

New York, Paris and London rank as the most attractive cities for retailers, with new opportunities arising for luxury store openings in the Middle East & Asia. Hong Kong ranks 4th and is the top Asia Pacific city on the list, followed by Shanghai.
    New York, Paris and London have demonstrated that they retain the key fundamentals of a successful retail location and are set to bounce back quicker this year than other destination cities, according to Savills Retailer Attractiveness City ranking, produced as part of its 2022 global Impacts research programme.
    "These cities all benefit from affluent domestic markets and have already demonstrated far higher levels of resilience over the last 18 months," says Marie Hickey, director of retail research at Savills. "New York (ranked 1st), suffered relatively less during the pandemic due to a robust domestic tourism market and a lower penetration of ecommerce in Paris (2nd) has steered costumers to its bricks and mortar luxury stores."
    Savills ranks the world's cities by the size of their retail market, international visitor appeal, domestic affluence, online penetration and growth prospects. For online penetration, a higher score will be given to markets with lower online penetration.
    In comparison, cities such as Hong Kong (4th), which are dependent on a steady stream of inbound tourism that forms a key pillar of the city's economy, have faced sharper declines and will face a longer road to recovery. According to research data of Savills, Hong Kong's prime street shop rents fell steeply from Q4 2019 to Q3 2021 by 27%. Simon Smith, Regional Head of Research & Consultancy, Asia Pacific at Savills comments, "While Hong Kong's road to recovery may be protracted, the report demonstrates that the city possesses many of the key attributes which make it a retail destination with global appeal."
    Moving up the ranking is Shanghai, with significant growth prospects alongside the scale of its retail market. Its resilience is down to a few key drivers, explains Nick Bradstreet, Head of Asia Pacific Retail, Savills. These include "the lack of outbound travel fuelling luxury spend, the emphasis on government on supporting domestic consumption and also the emergence of new retail sectors gaining traction, including more demand for sport and outdoor retailers and new energy vehicles (NEVs)."

Queensway, Hong Kong



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