Occupy Central not solely responsible for retail sector woes

It has actually been a weak year already.

It has been observed that it is easy to overestimate the impact of Occupy Central on the retail sector, with some regions having come to a complete standstill.

According to a research note from DBS, however, the sector was hurting long before the recent demonstrations.

Retail sales of popular tourist items had contracted year-on-year for seven consecutive months prior to Occupy Central thanks to China’s slowdown and the anti-corruption drive, both of which are expected to last into 2015.

Here's more from DBS:

Occupy Central has plainly worsened the retailers’ predicament and this could catalyze changes in the sector that some will find beneficial. The most apparent one is falling retail rents. According to Savills Research & Consultancy, rental increases in core shopping areas began moderating since the end of 2012.

Retailers already seeing dwindling profits prior to Occupy Central, such as high-end jewelry and watch retailers, may consider downsizing operations in Hong Kong, giving other retailers a chance to snap up prime retail locations.