Health-related businesses take up spaces once held by retailers in Hong Kong

Learn more about this recent trend seen in February.

According to a Knight Frank report, as the Lunar New Year arrived in late January, retail sales continued to show weakness, a trend that has persisted since last year. Provisional retail sales slightly increased to HK$35.3 billion in January 2025, reflecting a 7.6% MoM growth but a 3.2% YoY decline.

"This marked the eleventh consecutive month of YoY decline in retail sales, indicating a lack of positive momentum to drive growth in the retail market at the onset of 2025," the report said.

Here's more from Knight Frank:

In terms of specific categories, sales value of food, alcoholic beverages, and tobacco experienced a notable 10.9% YoY growth, with alcoholic beverages and tobacco showing the most significant increase of 26.4%. This uptick may be attributed to the tax reduction on alcoholic beverages implemented last year.

Additionally, clothing, footwear, and allied products recorded a long-awaited increase of 2.2% YoY, suggesting slight recovery in certain sectors. In contrast, consumer durable goods faced a substantial decline of 23.4% YoY, while sales of jewellery, watches and clocks, and valuable gifts fell by 17.9% YoY.

While traditional retail sectors continue to struggle, there is a noticeable shift towards innovative and health-focused businesses that are poised to thrive in evolving retail environments. Health and wellness-related businesses, such as fitness studios, health food shops, and wellness services, are beginning to occupy prime locations once held by larger brands and conventional retailers.

For instance, ONYX by GO24 Fitness recently opened its second location in Central District, located at the basement of LHT Tower, with a ground floor entrance and a total gross area of 8,150 sq ft, leased at HK$400,000 per month or HK$49 per sq ft. 

Additionally, Stachd Pickleball opened its court in early 2025 on the third floor of Hopewell Mall, marking the first pickleball court located within a shopping mall, offering over 10,000 sq ft of space. In the F&B sector, so’N, a vegetarian restaurant and wellness workshop located at 9-10 Jaffe Road, Wan Chai, provides healthy meals alongside therapeutic events.

The recent inauguration of the Kai Tak Sports Park on 1st March has generated positive feedback from nearby shopping malls and restaurants, noting increased foot traffic and business activity in the Kai Tak area. In light of the sporting events and infrastructure provided by the sports park, more retailers, especially those in health and wellness, are likely to seize the opportunities to expand their presence. 

Overall, we anticipate an increase in leasing activities in the market driven by “alternative” retailers that cater to specific consumer interests, reflecting the evolving landscape of the retail market.