Behind the bright facades of their shop windows, there is a darkening gloom enveloping Hong Kong retailers. And it's no wonder: August 2016 was the 16th consecutive month of declining sales in the sector.
It is widely reported that Mainland Chinese travellers have spent less. At the same time, according to research by Nielsen, 88% of Hong Kong consumers shopped online in the 12 months preceding March 2016.
Of course, this doesn't spell doom for the physical retail space. People will always go out, and will always be tempted by what they see in a real shop window. Many will simply prefer the experience of visiting a physical shop and 'trying before buying'.
But it is undeniable that the sheer convenience of online shopping has made a dent in the traditional retail model. Its impact will only deepen in the foreseeable future, until some kind of new balance is reached in the sector. In the meantime, there will be many casualties.
