was the leading causes while strategies like promotion of commercial spaces on vested lands and ceiling on rent prices can be the alternative measures.
Retail trade has contributed towards employment and economic growth in Hong Kong. This study will be focused towards identifying various strategies to achieve sustainable growth in retail industry of Hong Kong during soaring shop rent situation. In this particular research paper, different factors will be outlined which has caused turmoil in Hong Kong’s retail sector. The value of retail sales has drastically decreased in recent years, approximately by 6.9% over previous year. It has been observed that sales value of certain products such as jewelry, clocks and valuable gifts, photographic equipment and electrical goods, and consumer durables has decreased by 28.2%, 15.3% and 23.9% respectively. Retail business operators in Hong Kong market are facing major challenges in present scenario in terms of retaining their market share and gaining high revenue margins. This problem has mainly occurred due to decrease in purchasing power of China’s mainland tourists and increased total costs in form of wages and shop rents. It is clearly evident that minimum wage legislation of Hong Kong Government and anti-corruption policies of Chinese government are policy variables. These external factors are not under control of retail operators. However these operators can adopt the best strategy for reducing shop rents so as to achieve sustainable growth in Hong Kong market.
The retail trade sector is a vital component of utilities, transportation and trade supersector. This sector encompasses establishments in terms of engaging into retailing merchandise and rendering services in context of merchandise sale. Retailing process can be stated as final step in merchandise distribution. Retailers are generally organized to sell specific merchandise to general public in small quantities.