Yu Shing Pharmacy Expands as Luxury Brands Exit Causeway Bay

Yu Shing pharmacy has taken over a Russell Street storefront previously occupied by luxury brand La Perla, highlighting how local operators are stepping into spaces amid broader retail changes in Causeway Bay.

Shifting vacancy and new arrivals reshape the district

Causeway Bay recorded an overall vacancy rate of 13.2% in Q2 2025, up from 5.3% the previous quarter. High streets maintained zero vacancy into Q2 2026. International chains have adjusted footprints, with H&M closing its Causeway Bay flagship and Festival Walk branch in February 2026, leaving the company with one remaining Hong Kong outlet in Tsuen Wan Plaza. New openings include Miniso’s two-story flagship in central Causeway Bay, To Summer’s first Hong Kong branch as a Chinese perfume brand, and HBX at Hysan Place at 500 Hennessy Road. Korean brands Matin Kim and Emis have also expanded their presence.

These moves occur alongside established local destinations such as Fashion Walk, which spans Great George Street, Paterson Street, Cleveland Street and Kingston Street with over 100 stores, and Times Square at 1 Matheson Street, Hong Kong Island’s largest shopping mall featuring more than 230 stores. Hysan Place and Island Beverly Centre continue to draw shoppers with extended evening hours.

Ground-level rents and local operators respond to market signals

Ground-level shop rents in Causeway Bay show upward pressure on prime sites. A 23,000 sq ft shop on Percival Street sold for HK$1.15 billion, while a 200 sq ft unit received a HK$200 million offer. Global brands such as Zara have negotiated leases estimated at HK$5 million monthly rent. At the same time, street-level rents on Russell Street have declined 46% from 2018 to 2024, enabling local businesses to secure locations.

Futu Securities leased a 5,400 sq ft multi-floor space at Soundwill Plaza on Russell Street to grow its offline operations. Lee Garden Eight, a mixed-use project by Hysan Development and Chinachem Group, is adding green public spaces and office towers, while One Causeway Bay is scheduled to open later in 2026 with retail and office components on the former Excelsior Hotel site.

Local businesses like Yu Shing demonstrate adaptation by occupying spaces that international luxury tenants have left. The pharmacy’s move onto Russell Street occurs in a district where pedestrian links and waterfront projects, including connections from Hysan Place toward Caroline Hill Road, are expected to open progressively from 2026.

Retailers and property owners will continue monitoring lease negotiations and footfall patterns around established venues such as Lee Theatre Plaza at 99 Percival Street and Sogo as the district balances new entrants with longstanding local operators.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.