Retail sales grew by 4.6% y-o-y in Q3 2020, ending five consecutive months of decline. Sales gained momentum from July onwards, supported by a trend of “revenge spending”.  Core retail sales, excluding automobiles and gasoline, rose by 5.4% y-o-y in Q3 2020, underscoring a robust recovery in shopping activity.

Despite the robust recovery in retail sales, retailers generally remain cautious towards expanding their footprint, with some groups opting to close underperforming stores. With more time required for vacant units to be occupied, landlords are lowering asking rents and offering flexible terms to attract retailers.