HK retail sales drop 6.9% in September

Hong Kong's retail sales have dropped for seven months in a row, with its September retail sales declining by 6.9% compared to a year ago.

According to the latest figures released by the Census and Statistics Department, the value of retail sales in September 2024 was provisionally estimated at HK$29.6 billion. For the first nine months of 2024 taken together, it was provisionally estimated that the value of total retail sales decreased by 7.6% compared with the same period in 2023.

The revised estimate of the value of total retail sales in August 2024 decreased by 10% compared with a year earlier. 

Of the total retail sales value in September 2024, online sales accounted for 10.4%. The value of online retail sales in that month, provisionally estimated at HK$3.1 billion, decreased by 11.8% compared with the same month in 2023.

The revised estimate of online retail sales in September 2024 decreased by 0.7% compared with a year earlier. For the first nine months of 2024 taken together, it was provisionally estimated that the value of online retail sales decreased by 2% compared with the same period in 2023.

Analysed by broad type of retail outlet in descending order of the provisional estimate of the value of sales and comparing September 2024 with September 2023, the value of sales of commodities in supermarkets decreased by 1.1%. 

This was followed by sales of electrical goods and other consumer durable goods not elsewhere classified (-7.6% in value); jewellery, watches and clocks, and valuable gifts (-17.9%); food, alcoholic drinks and tobacco (-3.2%); wearing apparel (-8.7%); medicines and cosmetics (-2.5%); commodities in department stores (-11.4%); motor vehicles and parts (-26.7%); fuels (-8.6%); furniture and fixtures (-14.4%); footwear, allied products and other clothing accessories (-3.8%); Chinese drugs and herbs (-17.7%); and optical shops (-10.6%).

On the other hand, the value of sales of other consumer goods not elsewhere classified increased by 2.9% in September 2024 over a year earlier. This was followed by sales of books, newspapers, stationery and gifts (+20.3% in value).

A government spokesperson said that while the value of total retail sales continued to decline in September from a year earlier, the rate of decline narrowed. On a seasonally adjusted month-to-month comparison, the value of total retail sales recorded an increase.

Looking ahead, the spokesperson said that the near-term performance of the retail sector will continue to be affected by the change in consumption patterns of residents and visitors. However, the recent implementation of various stimulus measures in the Mainland economy, along with a potential easing of the Hong Kong dollar in relation to the US dollar due to upcoming US interest rate cuts, could help improve sentiment and encourage spending.

In addition, the central government's various measures benefitting Hong Kong, the government's various initiatives to boost market sentiment and increase employment earnings would also benefit the retail sector, added the spokesperson. 

Meanwhile, the Policy Address this year includes various measures that would benefit the retail sector, such as developing new tourist hotspots, relaxing visa application criteria for some ASEAN countries, and boosting "silver consumption", the spokesperson continued. 

Don't miss: 6 key takeaways for the HK marketing community from Policy Address 2024 

Back in October, Hong Kong chief executive John Lee delivered its third Policy Address at the LegCo, emphasising reforms aimed at boosting the city’s development and enhancing residents’ livelihoods.

The Policy Address has also launched a series of measures to assist small and medium enterprises (SMEs), including those in the retail sector, in addressing the challenges encountered in the process of economic restructuring. These include relaunching the principal moratorium under the SME financing guarantee scheme to ease the repayment pressure of enterprises, expanding the geographical coverage of eCommerce Easy to the 10 ASEAN countries, and relaunching the Hong Kong Shopping Festival in the next two years to help SMEs develop eCommerce business to expand their markets. These measures aim to help the retail sector in transitioning through the economic restructuring period and improve its prospects.

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