Landlords Urged To Slash Shop Rents By Half

The chairwoman of the Hong Kong Retail Management Association has called on landlords to slash rents by half as the SAR braces itself for more months of difficult retail conditions.

Annie Yau Tse, who is also chairwoman and CEO of the Tse Sui Luen jewellery company, said conditions for retailers have been difficult since the mass social unrest of last year, and are still tough due to the Covid-19 pandemic

Speaking on an RTHK programme, Yau Tse described the situation as more serious than the Sars outbreak, and said that many employers have been forced to ask employees to take unpaid leave or lay people off.

She said that although some landlords have lowered shop rents for tenants, reductions were only by 10 or 20 percent at most. She called on landlords to consider cutting rents by 50 percent, and to maintain them at reduced levels until at least June.

Yau Tse's comments come after it was revealed that retail sales in the city plummeted by 44 percent in February from a year earlier – the largest slump on record.

Sales of luxury items such as jewellery, watches and clothing were among the hardest hit, seeing sales drop by at least 70 percent.