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News Release


LUSH to Open 4 stores in HK & Macau

JLL locates prime retail space for LUSH largest premises in Asia in Central

Macau24 June 2015 - LUSH, a UK-based fresh handmade cosmetic company, today revealed its expansion plans to open four retail stores in Hong Kong and Macau in the next financial year. International property services agency JLL, the preferred agent of LUSH, has located prime retail space in Central for LUSH to open its largest store in Asia.

The parent company established its retail presence in Hong Kong in 2013 and currently has seven stores in Hong Kong and one store in Macau, employing 230 staff members across both cities. Annabelle Baker, Director of Lush Asia Limited, said, "LUSH has seen rapid growth in Hong Kong and Macau, with year-to-date (YTD) sales up 71%. For the next financial year ending June 2016, LUSH aims to open four retail stores in prime locations across Hong Kong and Macau. The success of the recently opened LUSH flagship on Oxford Street, London, which is 9500 square feet, has paved the way for us to explore larger retail sites globally. We are actively exploring opportunities for flagship sites locally. ."

"We will open our largest premises in Asia in Central, which will consist of the first spa and retail in Greater China. This store will be launching over 100 new innovative products for retail, some of which are exclusive to this location. The LUSH customer is no stranger to being pampered thanks to the luxurious make-up, skin, hair, bath and body care products full of fresh, natural ingredients, but the LUSH Spa takes the at-home experience to a whole new level via innovative treatments, comfortable surroundings, charming music and a bit of magic.

Every aspect of the LUSH Spa is fresh and handmade, from the exclusive products invented especially for the Spa to the breathtaking music composed for each treatment by Simon Emmerson of The Imagined Village. Inspired by LUSH's English roots, the Spa transports each guest into a world of nostalgic comfort with fresh flowers, vintage tea cups and old-fashioned books lining the shelves. The treatments are highly personal and are designed to genuinely address every level of the guest's well-being, making the LUSH Spa a truly unique experience in the Hong Kong market."

JLL has located prime retail and spa space for LUSH's store on the G/F to 4/F of SOHO Square, 21 Lyndhurst Terrace following its appointment by LUSH. The store, totalling 6,909 square feet, lettable, is set to open in the fourth quarter of this year.

"Unfortunately, we have seen retail sales in Hong Kong drop from the success of the previous years due to the slowdown in China's economy and a change in the type of tourists now visiting Hong Kong. As at the end of April, sales overall are down 2.2% yoy, largely due to the watch and jewellery sector sales being down as much as 20% yoy," said Tom Gaffney, Head of Retail at JLL.

"Cosmetic brands, however, are doing well, especially LUSH - which has a true fresh handmade and organic component behind it and offering products that are well priced – this why they are doing particularly well with local and tourists. We are noticing that cosmetics, fast fashion, sports and lifestyle retailers whose sales are all up single digit percent y-o-y are taking advantage of the opportunities to secure shops in prime shopping locations whilst the watch and jewellery groups are looking to downsize their shops," he said.

Mr. Gaffney believes the prime shopping districts, especially Causeway Bay, will undergo transformation and see many new tenants emerge, making for an exciting landscape that is more sustainable in the long run. He expects rents of the street shops to drop by 10% to 15%, compared with a previous forecast of declines of up to 5%, while rents at shopping malls are expected to grow by approximately 0% to 5%.

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About LUSH

Since establishing in 1995 in UK, LUSH currently has over 900 shops worldwide and are present in 49 countries. Creators of pioneering beauty products such as the fizzing bath ballistic, shower jellies and solid shampoo bars. LUSH places emphasis on fresh ingredients like organic fruits and vegetables. LUSH operates a strict policy against animal testing and supports Fair Trade and Community Trade initiatives. LUSH leads the cosmetics industry in combating over-packaging by running public awareness campaigns and developing products that can be sold 'naked' to the consumer without any packaging. LUSH has been awarded the RSPCA Good Business Award for 2006 and 2007, the 2006 PETA Trailblazer Award for Animal Welfare and the International Fund for Animal Welfare 'Business of the Year' award for 2010.