New | Swire’s Q3 retail mall sales improve as new outlets, activities attract shoppers

Swire Properties said the declining sales at its three shopping malls in Hong Kong have bottomed out in the third quarter, as new restaurants, retail outlets and creative in-mall entertainment attracted shoppers and improved pedestrian traffic.

Sales at Pacific Place mall in Admiralty fell 15.3 per cent in the first three quarters of the year, while sales at the Citygate Outlets mall in Tung Chung declined 11.2 per cent, and sales at Cityplaza in Taikoo dipped 4.2 per cent, according to a filing to the Hong Kong Stock Exchange.

In the first six months, Pacific Place reported a sales drop of 17 per cent, Citygate declined 13 per cent, while Cityplaza fell 4.1 per cent, Swire said.

“The retail market remains challenging, though we have observed that the overall sales decline is less severe than before,” said Swire Properties’ spokesperson.

A better-than-expected third quarter is good news for Swire’s parent Swire Pacific, as its airline unit Cathay Pacific Airways Ltd. continues to be weighed down by declining profits in the second half caused by overcapacity and competition.

Pacific Place has seen some improvements in traffic, as a result of a number of creative in-mall activities, and the addition of new restaurants and retail shops, Swire Properties said.