Hong Kong retail sales down 7% in March

It was attributed to factors such as a high base of comparison for visitor spending and the timing of the Easter holidays.

Hong Kong’s total value of retail sales in March took a 7% hit compared to the same period in 2023, reaching a provisional estimate of $3.99b (HKD31.2b).

When adjusted for price changes, the volume of retail sales dropped by 8.6% YoY.

Online sales accounted for 7.8% of total retail sales, totaling $2.4b, marking a 4.7% decrease from the previous year.

Key sectors experiencing declines included jewellery, watches, and valuable gifts (-17.7%), supermarkets (-3.4%), and wearing apparel (-17.5%).

Meanwhile, sales of other consumer goods saw an 8.7% increase, whilst medicines and cosmetics, motor vehicles and parts, and books, newspapers, stationery, and gifts also experienced growth.

March sales decline were attributed to factors such as a high base of comparison for visitor spending and the timing of the Easter holidays.

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Although the first quarter saw a 1.3% decrease in total retail sales compared to the previous year, there was a slight .3% increase on a seasonally adjusted quarter-to-quarter basis.

Looking forward, the government remains cautiously optimistic, citing potential boosts from a resurgence in inbound tourism and rising household income. 

Efforts to promote mega events and stimulate consumer sentiment are expected to further bolster the retail sector. However, the evolving consumption patterns of both visitors and residents pose ongoing challenges.