Hong Kong flags retail challenges as May sales slump 11.5% y/y
2024.07.02 07:18
HONG KONG (Reuters) – Hong Kong’s May retail sales fell 11.5% from a year earlier, government data showed on Tuesday, reflecting a surge in outbound trips, strength in local currency and a high base of comparison for visitor spending last year.
Hong Kong’s sales decreased to HK$30.5 billion ($3.90 billion) in the third consecutive monthly decline, following a 14.7% drop in April and a 7% fall in March.
In volume terms, retail sales in May fell 12.9% year-on-year, versus a 16.5% decline in April and an 8.7% drop in March.
Total retail sales value continued to decline in May, mainly affected by changes in the consumption patterns of visitors and residents, a government spokesman said.
“The retail sector may still face some challenges in the near term,” the spokesman said, adding that the retail sector can seize new opportunities by adapting to changing consumption patterns through revised sales mode and venturing into new businesses.
Measures launched by the central government, including the further enhanced Individual Visit Scheme of allowing more residents from Chinese cities to travel to Hong Kong on their own, rather than as part of a tour group, and an increase in duty-free allowance for mainland visitors should help stimulate retail businesses, the spokesman said.
“We hope that this measure (hike in duty-free allowance) will help stimulate mainland customers’ spending, particularly attracting more tourists from the GBA area,” said Bond Law, an executive director of Hong Kong Retail Management Association.
May visitor arrivals stood at 3.398 million, up 20.2% from a year-ago period, data from the Hong Kong Tourism Board showed, compared with 3.391 million visitors in April.
The number of mainland Chinese visitors stood at 2.63 million in May, up 14.9% year-on-year.
Sales of jewellery, watches, clocks and valuable gifts in May fell 21.4% year-on-year after a 28.8% decline in April.
Sales of clothing, footwear and accessories dropped 17.9% in May following a 24% slump in April.
($1 = 7.8129 Hong Kong dollars)
