The robust economy in 2007 boosted the sales of the retail market by an estimated 20 percent, and shoppers are expected to stay busy as the lunar new year approaches.

Most of the shopping malls reported solid performances last year.

Retail sales at Harbour City surged 27 percent to HK$11.4 billion, higher than in recent years.

Its sales during the Christmas season jumped 31 percent to an average ofHK$1,800 per square foot.

The store's Leasing Assistant General Manager Canis Lee said rising stock tendencies last year strengthened Hongkongers' purchasing power

At the APM store in Kowloon, leasing general manager Maureen Fung said younger customers often come to shop after gaining money on their stocks.

"This age group is more willing to spend money, as most of them do not have a saving plan," Fung said, adding that year-end bonuses and salary raises also contributed to the good market sentiment in Hong Kong.

APM recorded about HK$3 billion in retail sales in 2007, an approximately 20 percent increase.

Sales at Times Square rose 20 percent to an average of HK$1,735 per square foot during the Christmas season.

Despite the stock market fluctuating in recent days, the shopping mall employees are optimistic about the retail sales during in the lunar new year holiday.

"Hong Kong investors are rational and mature, so the fluctuation will not affect their consumption at all," Lee said.

In addition to Harbour City, APM and Times Square also projected a 20 percent increase in sales leading up to the lunar new year.

Fung even expected about 2,230,000 people will visit APM between Jan 31 and Feb 6, the peak days before the holiday. That traffic would be 15-20 percent higher than during average weeks.

Chinese University Professor of Finance Raymond So said that the retail market is not be easily affected by stock fluctuations.

"No one knows how long the instability will last," he said. "The influence brought to the retail market can be insignificant if the fluctuation is short lived," he said.

(HK Edition 01/24/2008 page1)