The Hong Kong government’s Census and Statistics Department recently released the latest supermarket industry data. In April, the overall retail sales value of superstores in the city fell by 3.0% compared to the previous year, reaching HK$3.944 billion, accounting for 13.3% of the total retail sales in Hong Kong. The year-to-date total was HK$50.981 billion, a decrease of 2.50% compared to the same period last year.
In the four major product categories, sales figures showed an increase in one category and a decrease in three categories compared to the same period last year. The performance of each category on a year-on-year basis was as follows (percentage of sales in each category of the overall supermarket sales in parentheses): dairy products and eggs, non-alcoholic beverages, rice and flour, and other food products increased by 0.4% (share: 41.4%); personal care products, household items, and other goods decreased by 2.5% (share: 15.5%); fresh or chilled meats, fish, seafood, fruits and vegetables, and frozen foods decreased by 4.2% (share: 21.1%); alcoholic beverages and tobacco decreased by 8.3% (share: 22.0%).
The decrease in supermarket retail sales in Hong Kong reflects the ongoing challenges faced by the industry amidst economic uncertainties and changing consumer preferences. Factors such as inflation, global supply chain disruptions, and the impact of the COVID-19 pandemic have contributed to the decline in consumer spending on certain categories of products. Despite the overall decrease in sales, certain sectors have shown resilience and even growth, pointing to evolving shopping patterns and consumer demands in the market.
Looking ahead, it will be crucial for supermarkets and retail businesses in Hong Kong to adapt to the changing landscape, innovate their offerings, and enhance their online presence to meet the needs of tech-savvy consumers and navigate the evolving market dynamics. By leveraging data analytics, customer insights, and digital marketing strategies, retailers can better understand consumer behavior, optimize their product assortment, and drive sales growth in a competitive environment.