Vouchers Won't Bring Us Back To Life, Retailers Say

The retail sector says it’s unlikely the new round of cash vouchers will bring the market “back to life” as consumers become “more cautious” than they used to be.

The government had announced that it will hand out HK$10,000 to each permanent resident and new immigrant to mitigate the impact of the Covid-19 outbreaks, but the Retail Management Association’s chairwoman, Annie Yau Tse, said the scheme will not help much.

"It will be a stimulus for a while. But overall, it doesn't really stimulate major growth. Look at last year's full-year numbers, or even just the second half, you don't really see spectacular growth when you spread the figures out," she told an RTHK programme on Tuesday.

Tse noted that in the previous round of the voucher scheme, consumers tended to be more cautious during the second phase of the scheme last year, and she expects the same this year.

The association maintains its earlier forecast that the retail market will shrink in the first half of the year.

Tse also expressed disappointment at Financial Secretary Paul Chan’s decision not to extend the planned three-month moratorium on commercial rents, saying this means there will be even less incentive for landlords to discuss rent concessions with retailers.

She said apart from a few mall owners, landlords have not been willing to cut rent.

Tse said with many retailers seeing business volume drop by more than half in this wave of the Omicron outbreak, landlords should consider cutting rent at least by half.