HK retail sales drop 3.2% YOY in January

Hong Kong's retail sales have declined for 11 consecutive months, with a 3.2% YOY decrease in January compared to a year ago. 

According to the latest figures released by the Census and Statistics Department, the value of total retail sales in January was provisionally estimated at HK$35.3 billion. The revised estimate of the value of total retail sales in December 2024 decreased by 9.6% compared with a year earlier.

Of the total retail sales value in January 2025, online sales accounted for 6.9%. The value of online retail sales in that month, provisionally estimated at HK$2.4 billion, increased by 3.5% compared to the same month in 2024.  Meanwhile, the revised estimate of online retail sales in December 2024 decreased by 17.8% compared to the year earlier. 

The value of sales of jewellery, watches and clocks and valuable gifts have also decreased 17.9% in January 2025, as compared to January 2024, bearing in mind the difference in the timing of the Lunar New Year. 

This is followed by sales of electrical goods and other consumer durable goods not elsewhere classified (-10.5% in value); fuels (-4.3%); motor vehicles and parts (-52.6%); books, newspapers, stationery and gifts (-15.1%); furniture and fixtures (-26.4%); Chinese drugs and herbs (-4.6%); and optical shops (-4.4%).

On the other hand, the value of sales of other consumer goods not elsewhere classified increased by 6.6% in January 2025. This is followed by sales of commodities in supermarkets (+4.9% in value); food, alcoholic drinks and tobacco (+10.9%); wearing apparel (+1.2%); medicines and cosmetics (+4.3%); commodities in department stores (+0.5%); and footwear, allied products and other clothing accessories (+7.1%).

Don't miss: HK retail sales drop 9.7% YOY in December

A government spokesman said that the value of total retail sales recorded a much narrower year-on-year decline in January, and turned to an increase on a seasonally adjusted month-to-month comparison. This is possibly due in part to the earlier arrival of the Lunar New Year on 29 January, the spokesman explained, adding that "It would thus be more meaningful to examine the figures for January and February combined, when available, to assess the latest retail sales performance." 

Looking ahead, the spokesman said that the near-term performance of the retail sector would continue to be affected by the change in consumption patterns of visitors and residents. "Nevertheless, the central government's roll-out of various measures to boost the mainland economy and benefit Hong Kong, coupled with the government's proactive efforts to promote tourism development and boost local sentiment, as well as increasing employment earnings, would benefit the sector," the spokesman added. 

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