Hong Kong malls bet on Asian Games to boost footfall, tenant sales amid spending shifts

Hong Kong shopping mall operators are banking on the upcoming Asian Games to stimulate foot traffic and bolster tenant sales, as retailers grapple with competition from Shenzhen, overseas shopping, and online spending. Sino Group, a prominent landlord, is extending its successful World Cup strategy to the Asian Games, anticipating a surge in footfall across four malls. Selected merchants are expected to witness double-digit year-on-year sales growth during the campaign.

Bella Chhoa, Sino Group's chief commercial officer, notes that the Asian Games will draw a broader range of visitors compared to the concentrated football fan base attracted by the World Cup. To cater to this diverse audience, Sino Group is employing athlete-themed displays, promotions, and interactive activities alongside live broadcasts. The aim is to keep visitors engaged with retailers for longer periods.

This strategy aligns with a broader shift in how mall operators view their role in the retail landscape. Roy Ng, head of research at Newmark Sino, describes sports programming as an "important pillar of experiential retail." As consumer spending increasingly leans towards experience-led consumption, malls must explore additional experiential uses to maintain relevance.

The Asian Games, set to open in Nagoya, Japan, on Saturday, will run until October 4. Initially, mall operators face the challenge of converting higher footfall into sales. Ng emphasizes that the sector's biggest hurdle is turning increased visitor numbers into actual spending. With limited sports venues in Hong Kong, malls can leverage large atriums and other spaces for temporary sporting activities to foster a sense of community and generate spending through event-related promotions.

Henderson Land Development is also adapting its World Cup strategy for the Asian Games, launching six sports-related programs at its MCP Central and MCP Discovery malls in Tseung Kwan O. The company anticipates a double-digit increase in visitor numbers during the second half of the campaign, benefiting tenants in the sportswear, lifestyle retail, and food and beverage sectors.