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Hong Kong Retail Management Association
Requests for Temporary Rental Relief

(6 November, Hong Kong) To help the survival of Hong Kong retailers in the current deteriorating economic situation, the Hong Kong Retail Management Association has taken the initiative to pledge for a temporary rental relief from all landlords. The Association has sent letters to more than 30 major landlords yesterday, including Hang Lung, Henderson, Hutchison, Hopewell, MTR, Sun Hung Kai, Sino, Swire, The Link, the Hong Kong Housing Society and more, requesting for a 20% temporary rental relief for 6 months with immediate effect. Details of the letter are as follows:

The global financial crisis has hit retailers in Hong Kong very hard and, in the last two months, sales have declined quickly and sharply. The downward trend has accelerated in October with same store sales of many types of consumer goods down by up to 25%. Several retailers have already ceased operations.

As you may have already noticed, much earlier and much deeper discounts have appeared in the market reflecting the very tough trading environment.

Hong Kong has gone through a sustained period of high rental increases in the last 2-3 years. Although we respect our contractual obligations, in the current economic environment with slumping consumer demand, we request for your consideration:-

20% temporary rental relief for 6 months, effective immediately

Such a reduction would help retailers to survive during these tough times and may help prevent more retailers from going out of business.

As partners in retail, the Association wishes to put forward the above-mentioned fair temporary proposal to all landlords so that we can all play a part in ensuring the ongoing survival of Hong Kong's retailers.

Press Contact:
Ms. Caroline Mak, Chairman of HKRMA
Tel.: 2299 3331      E-mail: csmak@dairy-farm.com.hk



Issued by Hong Kong Retail Management Association on06/11/2008