The Hong Kong government’s Census and Statistics Department released the latest provisional retail sales statistics on the 3rd of May. In March, the total value recorded was 31.2 billion Hong Kong dollars, representing a 7.0% decrease compared to the same month last year. However, it was a 1.9% increase from the previous month, though after seasonal adjustment, there was a 2.7% decrease compared to February. Online retail sales in the retail sector fell by 4.7% year-on-year to 2.42 billion Hong Kong dollars, accounting for 7.8% of total sales value. When excluding price changes, retail sales volume in March decreased by 8.6% compared to the previous year.
A government spokesperson noted that the decline in total retail sales value for March was partly attributed to the high comparison base of tourist spending and the Easter holidays. In the first quarter overall, the total retail sales value saw a slight year-on-year decrease of 1.3%. After seasonal adjustment, there was a 0.3% increase in retail sales value compared to the previous quarter.
Looking ahead, the spokesperson pointed out that the further recovery of the tourism industry and an increase in household income should continue to support the retail sector. Government efforts to promote mega-events and boost the atmosphere are expected to be helpful as well. However, challenges may persist due to shifts in consumer spending patterns among tourists and local residents.
The top three performing retail categories in terms of annual sales growth were alcoholic beverages and tobacco, up by 14.3% (compared to a 43.0% increase the previous month), pharmaceutical and cosmetic products up by 8.9% (an increase of 14.9%), and other uncategorized consumer goods up by 8.7% (compared to a 16.3% increase in the previous period). On the other hand, the three categories with the largest declines were fresh fruits and vegetables, down by 26.2% (a 20.1% decrease the previous month), jewelry, watches, and valuable gifts falling by 17.7% (a 3.7% decline), and clothing down by 17.5% (a 10.4% increase in the previous month).