The long holiday just passed should have been the retail season, but this year is different
The Hong Kong society continues to experience extreme turmoil. Major shopping malls are closed, traffic is blocked, street traffic is sparse, and passengers are at a loss. The vacancy of shops in Wang District has increased dramatically, and the situation is terrible. The economy is entering the polar winter, and business pessimism is lingering. If the situation has not improved, it is expected that after the Christmas and New Year, the store will be on a large scale, the economy is sluggish, Hong Kong people are experiencing the most terrible nightmare since the return!
Since June, social violence has been endless
During the 11th holiday, the street demonstrations in Hong Kong were everywhere. The large shopping malls were heavily locked. The railway stopped to make the whole city a dead city. The public did not have the mood or the courage to spend the street. Originally a good tourist destination, making large-scale exhibitions, competition events, one by one was canceled. In many areas, warnings were issued about the safety of Hong Kong tourism, causing the number of tourists to plummet. On the first day of the Mainland’s 11th Golden Week, visitors to Hong Kong fell more than half year-on-year, hitting a nine-year low.
Looking at the bustling areas of Causeway Bay and Mong Kok in the past, the retail business has plummeted. The pressure on shops with tourists is particularly high. Many pharmacies and watch shops are not finished before the lease expires. After the owner reclaimed the shop and re-leased the rent, the rent reduction was double-digit. Some owners have to reduce their rents and stay away from customers. In fact, the rapid decline in the rental value of shops will drag down the property valuation. Once the economy is worse, a large-scale outage will occur, and the bank’s nerves will be touched at any time to ask the borrowers to recover the loan requirements. The potential negative impact of the chain cannot be underestimated.
The so-called “one glory and glory, one loss and all damage." The retail industry is at its worst in history
Even if the owners are willing to reduce rents, it is still difficult to reverse the large number of empty shops. To make matters worse, in the current era of the network, the traditional physical store business model is very challenging. The catastrophic disaster in the retail industry is bound to accelerate the transformation of consumption patterns.
What is even more worrying is that the local public is pessimistic about the prospects and the consumption tendency is prudent; the contradiction between China and Hong Kong is intensifying, the tourists from the Mainland disappear, and the fertilizer flows to other people’s fields. The result is not only the loss of business interests, but also the grassroots are affected by the economic downturn. It is doubtful that the government’s tax revenue will decline and how to maintain social welfare and promote economic development in the long run.
The rapid deterioration of the retail industry reflects the dramatic changes in market demand and the economic outlook. At that time, the “Sars" industry was sluggish, and after the epidemic, the two places were more closely linked to the economy and trade, and the economy was quickly restored. But this time, the political struggle will not be seen at the end. The rule of law, security, harmony, and inclusive society are no longer. The business environment is not what it used to be. The funds and talents that have left may not come back.
Nai’s government lost morality, weak and incompetent, and Pepsi did not. This economic downturn is not a normal cyclical adjustment, but a turning point in the rise and fall of the destiny. Ning is a Taiping dog, and it is a sorrow for the troubled people. Now Hong Kong people have a deep understanding.