JD.com’s US$1.3b expansion could test Hong Kong’s footfall-driven retail property model

Chinese e-commerce firm builds network of stores and warehouses that analysts say may reduce reliance on footfall for some retailers

JD.com’s rapid expansion in Hong Kong could challenge the property model that has long made the city’s busiest streets and shopping centres its most valuable, analysts say.

The investments are part of a broader push into Hong Kong by JD.com, which in June said it had invested HK$35 billion in the city across retail, logistics, technology and other businesses.

For decades, Hong Kong property values have largely been driven by location: the more people passing through a street or shopping centre, the higher the rent it could command.

Analysts said JD.com was testing a different model. Its stores, warehouses and logistics facilities were valued not only for the income they generated, but also for their role in a wider network moving goods to customers.