3Coins, an Osaka-based retailer, plans to open an outlet in Causeway Bay, joining a list of Japanese businesses that are finding value amid a slump in Hong Kong’s retail real estate market.
3Coins will open its first store in mid-July in Hysan Place and will carry Japanese products including grocery items, according to a Monday statement from Yaichi Group, a partner of the retailer. 3Coins was founded in 1994 and now has 365 stores across Japan. The size of the company’s store in Hong Kong was not made available.
“Hong Kong’s current economic climate is challenging … [but] many Hongkongers refer to Japan as their ‘hometown’, that’s why we’re committed to bringing good quality Japanese products at great value to the city,” said Elmas Lou, a Hongkonger who co-founded Yaichi.
He said Yaichi, which represents Japanese brands like Sugar Butter Sand, Tokyo Banana and Mr. Cheesecake in Hong Kong, was also looking to expand its Japanese brands in the city.
“We recognise the strong local demand for authentic Japanese products and are dedicated to introducing more high-quality offerings to meet consumer expectations,” he said.
The success stories of existing retailers in Hong Kong including supermarket chain Don Don Donki, furniture shop Nitori, as well as Muji, Francfranc and Aeon, have boosted the confidence of other Japanese businesses in the city, an agent said.
So far this year, Japanese retailers accounted for 23 per cent of new foreign retail leases in the city, according to property. In 2024, they accounted for 26 per cent.
“After Covid and the opening of the border, the retail market slowed down significantly and we see that vacancy rates on high streets and shopping centres increased,” Chan said. “Landlords have become more flexible and offer super attractive terms to tenants – especially new entrants from overseas.”
Retail sales in Hong Kong fell 3.5 per cent in March, marking the 13th straight month of declines, according to the latest official data. That was less severe than the 13 per cent plunge recorded in February. The slump has been attributed to lower tourist spending in the city and Hongkongers’ preference to shop and eat in Shenzhen and elsewhere on the mainland where prices are generally lower.
Between 2019 and 2023, rents in the city’s four core shopping locations – Causeway Bay, Central, Mong Kok and Tsim Sha Tsui – fell between 29 per cent and 47 per cent, according to another property agency. Last year, those rents improved by 3.2 per cent to 6.7 per cent.
This year, around 700,000 sq ft of new prime retail property supply will be added to the existing stock, following an increase of 1.2 million sq ft in 2024, the agency said.
Meanwhile, 33 Cubread, a bakery in the city that is known for its Japanese-style bread, was set to open its second outlet in the city, located in Central.
Its first outlet opened in October and shoppers formed long queues to buy products like its cube-shaped croissants.
A staff member at its Causeway Bay store told the Post that the second outlet was being fitted out and was likely to open next month.
Separately, Sephora, a French cosmetics retailer that is part of the LVMH Group, was also planning to open another shop in K11 Musea in Tsim Sha Tsui in June.
“Hong Kong’s current economic climate is challenging … [but] many Hongkongers refer to Japan as their ‘hometown’, that’s why we’re committed to bringing good quality Japanese products at great value to the city,” said Elmas Lou, a Hongkonger who co-founded Yaichi.
He said Yaichi, which represents Japanese brands like Sugar Butter Sand, Tokyo Banana and Mr. Cheesecake in Hong Kong, was also looking to expand its Japanese brands in the city.
“We recognise the strong local demand for authentic Japanese products and are dedicated to introducing more high-quality offerings to meet consumer expectations,” he said.
The success stories of existing retailers in Hong Kong including supermarket chain Don Don Donki, furniture shop Nitori, as well as Muji, Francfranc and Aeon, have boosted the confidence of other Japanese businesses in the city, said a property agency.
So far this year, Japanese retailers accounted for 23 per cent of new foreign retail leases in the city, according to property. In 2024, they accounted for 26 per cent.
“After Covid and the opening of the border, the retail market slowed down significantly and we see that vacancy rates on high streets and shopping centres increased,” Chan said. “Landlords have become more flexible and offer super attractive terms to tenants – especially new entrants from overseas.”
Retail sales in Hong Kong fell 3.5 per cent in March, marking the 13th straight month of declines, according to the latest official data. That was less severe than the 13 per cent plunge recorded in February. The slump has been attributed to lower tourist spending in the city and Hongkongers’ preference to shop and eat in Shenzhen and elsewhere on the mainland where prices are generally lower.
Between 2019 and 2023, rents in the city’s four core shopping locations – Causeway Bay, Central, Mong Kok and Tsim Sha Tsui – fell between 29 per cent and 47 per cent, according to other property. Last year, those rents improved by 3.2 per cent to 6.7 per cent.
This year, around 700,000 sq ft of new prime retail property supply will be added to the existing stock, following an increase of 1.2 million sq ft in 2024, the agent said.
Meanwhile, 33 Cubread, a bakery in the city that is known for its Japanese-style bread, was set to open its second outlet in the city, located in Central.
Its first outlet opened in October and shoppers formed long queues to buy products like its cube-shaped croissants.
A staff member at its Causeway Bay store told the Post that the second outlet was being fitted out and was likely to open next month.
Separately, Sephora, a French cosmetics retailer that is part of the LVMH Group, was also planning to open another shop in K11 Musea in Tsim Sha Tsui in June.
