Demand for retail space from international brands and shifting consumer behaviors have helped Hong Kong’s Causeway Bay retain its ranking as the second most expensive shopping street in the world, according to a Cushman & Wakefield report. New York’s Upper Fifth Avenue remains the most expensive. Three other Asia Pacific streets are also included in the global list: Tokyo’s Ginza, Sydney’s Pitt Street Mall, and Seoul’s Myeongdong.
The annual report, Main Streets Across the World, analyzed 451 top retail streets from around the world and ranked them based on prime rental value.
Causeway Bay retained its second-place rank despite a drop in rents last year and a sharp decline in visitors from Mainland China. Strategies by retailers to attract more local consumers included offering more low-end offerings and a focus on high streets with strong foot traffic and high-performing malls, as well as store expansion.
Landlords in other areas are also adapting to the changing retail landscape, veering away from luxury brands and adding more mass market offerings such as fast fashion and food and beverage options. Health and wellness brands are also being added to the mix.
According to the report, prominent retail destinations in Asia Pacific are thriving because of growth opportunities in the emerging economies, lowered rents in core markets and the increasing move towards experiential shopping. Tourism also contributes to the demand as tourists flock to places that provide unique shopping experiences. Amidst the move towards e-commerce, retailers in the region are also integrating virtual retail into their strategy to drive sales.
Get a deeper insight into the top shopping streets in the world and how Asia Pacific is faring in the retail landscape here.