Sales Surge 81% at China’s K11 Malls So Far This Year

Since January 2021, K11 mall properties in Hong Kong and mainland China have delivered a “strong” performance with cumulative sales surging 81 percent in the year-to-date, compared with the same period last year, according to data in interim results shared with analysts by Hong Kong-based New World Development.

In the first half of the fiscal year ending on December 31, 2020, Shanghai’s K11 was among the best-performing, with a sales growth rate of 37 percent, hitting highs unseen since its opening in 2013.

This good news was tempered by bad, as New World’s flagship Hong Kong property, K11 Musea, has been forced to temporarily close this week, after a Covid-19 outbreak was linked to one of its restaurants. It’s expected to re-open on Friday.

But even in Hong Kong, where retail sales have been on a losing streak for almost two years, dropping by up to 44 per cent, Adrian Cheng, executive vice-chairman and chief executive of New World, believes the worst will soon be behind them.

“I am very optimistic that Hong Kong’s economy will recover gradually as more and more Hong Kong residents are vaccinated,” Cheng said. “I believe that the local retail market will continue to improve and overall sales, for the second half, will grow by a double-digit percentage this year.”