HK retail sales drop 11.8% in July

Hong Kong’s retail sales in July have dropped 11.8% compared with a year ago, marking the fifth month of declines due to the change in consumption patterns.  

According to the latest figures released by the Census and Statistics Department, the value of the total retail sales in July 2024 was provisionally estimated at HK$29.1 billion.  

The revised estimate of the value of total retail sales in June 2024 decreased by 9.7% compared with a year earlier. For the first seven months of 2024 taken together, it was provisionally estimated that the value of total retail sales decreased by 7.3% compared with the same period in 2023.  

Of the total retail sales value in July 2024, online sales accounted for 7.8%. The value of online retail sales in that month, provisionally estimated at HK$2.3 billion, increased by 1% compared with the same month in 2023.  

The revised estimate of online retail sales in June 2024 increased by 5.6% compared with a year earlier. For the first 7 months of 2024 taken together, it was provisionally estimated that the value of online retail sales decreased by 0.1% compared with the same period in 2023. 

Analysed by broad type of retail outlets in descending order of the provisional estimate of the value of sales and comparing July 2024 with a year ago, the value of sales of commodities in supermarkets decreased by 4.2%.  

This was followed by sales of other consumer goods not elsewhere classified (-6.0% in value); jewellery, watches and clocks, and valuable gifts (-25.0%); wearing apparel (-16.6%); food, alcoholic drinks and tobacco (-4.1%); electrical goods and other consumer durable goods not elsewhere classified (-4.1%); commodities in department stores (-24.3%); motor vehicles and parts (-27.9%); fuels (-9.8%); furniture and fixtures (-22.4%); footwear, allied products and other clothing accessories (-17.9%); Chinese drugs and herbs (-24.9%); and optical shops (-15.7%). 

Based on the seasonally adjusted series, the provisional estimate of the value of total retail sales decreased by 4.5% in the three months ending July 2024 compared with the preceding three-month period, while the provisional estimate of the volume of total retail sales decreased by 5.1%. 

A government spokesman said that the decline in total retail sales in July was due to the continued impact of the change in consumption patterns and the strong Hong Kong dollar. "More outbound travels by residents during the summer holidays were also one of the factors."

Looking ahead, the spokesman said that the retail sector will still face challenges in the near term. Nonetheless, the Central Government's various measures benefitting Hong Kong, as well as the Hong Kong government’s strenuous efforts to promote a mega event economy, boost market sentiment and support the development of the sector, should help stimulate retail businesses.  

Continued growth of the economy and rising employment earnings should also provide support for the retail sector.  

The spokesman added that the government will continue to assist small and medium-sized enterprises, including those in the retail sector, in adopting ready-to-use digital technology solutions through the Digital Transformation Support Pilot Programme to accelerate digital transformation.  

Since April this year, Hong Kong’s retail sales have been falling due to the changing consumer behaviour and the strong Hong Kong dollar.

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