Online sales are contributing to the struggles of the traditional retail industry as much as the slowing economy, Lan Kwai Fong Group chairman Allan Zeman says.
He said the trend led to the practice of landlords supporting food and beverage retailers with rents from other tenants, the Hong Kong Economic Journal reports.
As a result, rents have tripled for the latter, Zeman said.
He blamed the problem on a tenant ratio heavily skewed toward food and beverage tenants — seven for every three other types of retailers.
Zeman said the ratio should be reversed.
Zeman has launched LKF Capital, a private equity fund that invests in lifestyle, entertainment and food and beverage brands.
Meanwhile, he said investors should not be overly concerned about China’s policies, saying these are mostly meant to maintain stability.
Zeman is frequently invited by Chinese cities to share his experience in turning Lan Kwai Fong, a once rundown pocket of Central, into a success story.
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