Hong Kong Retail Sales Decline

HONG KONG (Reuters) – Hong Kong’s June retail sales fell 9.7% from a year earlier, government data showed on Thursday. This decline reflects the changing consumption patterns of visitors and residents alongside the strong Hong Kong dollar.

Sales decreased to HK$29.9 billion ($3.83 billion), marking the fourth consecutive monthly decline. This follows an 11.5% slump in May, 14.7% drop in April, and a 7% fall in March.

A government spokesman noted that while total retail sales values fell, the rate of decline had narrowed. “The retail sector will still face challenges in the near term,” the spokesman stated.

Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association, mentioned that the retail market was “facing a difficult moment now,” predicting that industry weakness would last until the end of the year.

In volume terms, retail sales in June fell 11.2% year-on-year, compared to a 12.9% decline in May, 16.5% drop in April, and an 8.7% fall in March.

For the first half of 2024, retail sales value fell 6.6% year-on-year, and volume was down 8.2% compared to the previous year.

June visitor arrivals reached 3.132 million, up 14% from a year-ago period, as per data from the Hong Kong Tourism Board. This was a decrease from 3.398 million visitors in May. The count of mainland Chinese visitors in June was 2.341 million, reflecting an 8.6% year-on-year increase.

Sales of jewellery, watches, clocks, and valuable gifts in June dropped 23.1% year-on-year, following a 21.4% drop in May. Sales of clothing, footwear, and accessories fell 9.1% in June after a 17.9% slump in May.

($1 = 7.8144 Hong Kong dollars)