'HK retail industry in deep water due to low consumption,' says retail association chair

The rising trend of Hongkongers heading north for shopping and entertainment has hit the Hong Kong retail industry hard, with mainland tourists spending less in the city. 

Annie Yau Tse, chairman of HKRMA, said during the 2024 Hong Kong Retail Summit on Wednesday, that the Dragon Boat Festival holiday did not benefit the city’s retail sector much, adding that the industry is in "deep water" with such low consumption.

She said due to the rising trend of Hong Kong residents heading north and reduced tourist arrivals, the Hong Kong retail industry has seen a double-digit decline in business compared to last year.

Furthermore, she observed that some inbound visitors to Hong Kong are no longer carrying luggage on arrival, indicating that they travel to the city mainly for sightseeing rather than shopping.

During a speech at the event, Tse said given that the consumption patterns of locals and tourists have changed significantly, the industry should innovate and strengthen cooperation by integrating various elements of "food, entertainment, shopping, and accommodation," leveraging synergistic effects.

Meanwhile, the city's commerce chief Algernon Yau said during a speech that, despite social and economic activities having returned to normal, the local retail industry still faces different challenges, including changes in consumer behaviour, and the retail industry must continue to innovate and adjust operations to remain competitive.

As the consumer behaviour is constantly changing, he said local retailers accelerate their digital transformation and upgrade at a faster pace, making full use of the omnichannel marketing model that combines online and offline in order to create a better shopping experience for consumers.

At the end of the speech, Yau called on the industry to respond to the courtesy campaign and promote the spirit of warm hospitality in Hong Kong, continuously improving service quality so that every consumer feels at home.

Don’t miss: HK retail sales plunge 14.7% in April amid changing consumption patterns

In fact, Hong Kong’s retail sales for April dropped 14.7% compared to a year ago, twice the decline recorded a month ago, according to the latest figures released by the Census and Statistics Department. This was partly due to the changing consumer behaviour observed over the Easter holidays.

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