Hong Kong Retail Resilience: Bakehouse Expands Amid Economic Challenges
Hong Kong Retail Landscape and Bakehouse's Expansion
Bakehouse, a prominent bakery in Hong Kong, is countering the city’s retail gloom by investing HK$31 million to double its footprint across the territory. With plans to open new branches in Tsim Sha Tsui and Sha Tin, founder Gregoire Michaud highlighted the growing demand for their famous sourdough egg tarts.
A Bright Spot in a Dismal Market
- Bakehouse's growth strategy involves expanding to
- In contrast, Hong Kong’s retail sector grapples with high vacancy rates, with reports suggesting that one in ten retail shops are currently empty.
- Pockets of success include local bakeries and niche shops catering to unique consumer tastes.
Challenges for Hong Kong Businesses
Despite a promising outlook for Bakehouse, the broader industry faces significant challenges:
- More than 600 street shops shut their doors this year.
- Retail rents have plummeted over 70% since 2014.
- Small businesses, particularly in the food and beverage sector, are suffering as consumer spending shifts to nearby Shenzhen.
Future Prospects
As Bakehouse expands, it plans to hire 150 additional staff, bringing its workforce to 450. Michaud aims to uphold the quality and integrity of their products, which include their popular egg tarts selling up to 20,000 pieces a day. The success of Bakehouse could signal new opportunities within Hong Kong's evolving retail landscape and possibly spark a resurgence of local businesses.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.