By South China Morning Post | Created at 2024-12-26 05:19:47 | Updated at 2024-12-26 17:13:41
12 hours ago
Hong Kong’s retail, and food and drink industries experienced a rocky year in 2024 as several chains went out of business.
But analysts said they were optimistic about the market outlook in 2025, expecting lower rents and increased consumption prompted by a multi-entry visa scheme for Shenzhen residents.
Brandy Ho Hon-ming, sales director of property agency Midland, said high expectations fell short after the reopening of the border between Hong Kong and mainland China as residents opted to splash out abroad and travellers spent less in the city, which caught retailers and eateries off guard.
“The closure trend is especially noticeable in the food and drink industry, though new restaurants continued to open throughout the fourth quarter. Take Causeway Bay as an example, it is not as bustling as it used to be at night,” Ho said.
“If the daytime economy is thriving, the nighttime economy will be too. It’s all about the not-as-favourable overall business environment. The rental costs are relatively low, but there are other rising expenses such as food price and manpower.”
In December, Dragon Palace Restaurant, a traditional Chinese eatery operating for 60 years with five locations, marked the end of an era. Itacho Sushi, a long-standing sushi chain with as many as 27 branches since 2007, also shut down.
