HK retail sales drop 9.7% in June

Hong Kong’s retail sales for June have dropped 9.7% compared to a year ago, marking the fourth consecutive month of contraction as Hongkongers head north to spend. 

According to the latest figures released by the Census and Statistics Department, the value of total retail sales in June 2024 was provisionally estimated at HK$29.9 billion. For the first half of 2024, it was provisionally estimated that the value of total retail sales decreased by 6.6% compared with the same period in 2023.

The revised estimate of the value of total retail sales in May 2024 decreased by 11.4% compared with a year earlier.

Of the total retail sales value in June 2024, online sales accounted for 7.8%. The value of online retail sales in that month, provisionally estimated at $2.3 billion, increased by 5.2% compared with the same month in 2023. 

Analysed by broad type of retail outlet in descending order of the provisional estimate of the value of sales and comparing June 2024 with June 2023, the value of sales of jewellery, watches and clocks, and valuable gifts decreased by 23.1%. 

This was followed by sales of other consumer goods not elsewhere classified (-1.2% in value); commodities in supermarkets (-0.5%); wearing apparel (-13.2%); food, alcoholic drinks and tobacco (-5.7%); electrical goods and other consumer durable goods not elsewhere classified (-4.7%); commodities in department stores (-18.6%); motor vehicles and parts (-25.1%); fuels (-12.3%); furniture and fixtures (-9.8%); footwear, allied products and other clothing accessories (-9.1%); Chinese drugs and herbs (-2.8%); and optical shops (-13.9%).

On the other hand, the value of sales of medicines and cosmetics increased by 3.4% in June 2024 over a year earlier. This was followed by sales of books, newspapers, stationery and gifts. 

A government spokesman said that while the value of total retail sales continued to decline amid the changing consumption patterns of visitors and residents and the strong Hong Kong dollar, the rate of decline narrowed further. “A slight increase of 2.3% was seen on a seasonally adjusted month-to-month comparison, reflecting signs of stabilisation in retail activities.”

Looking ahead, the spokesman said the retail sector will still face challenges in the near term. Meanwhile, the central government's various measures benefitting Hong Kong, as well as Hong Kong government's efforts to promote a mega event economy and support the development of the local retail sector, should benefit the sector. For example, the HKTDC has organised various large-scale public exhibitions during the summer holidays, such as the recently held Hong Kong Book Fair in July and the upcoming Food Expo.

“In addition, continued growth of the economy and rising employment earnings should also provide support to the retail sector,” said the spokesman. 

The spokesman also added that the Hong Kong government will continue to support the development of the local retail sector. One of the directions is to continue supporting small and medium-sized enterprises, including those in the retail sector, in upgrading and transformation, and market development.

Don't miss: HK's first eCommerce festival to help local brands expand into China

Back in July, secretary of finance Paul Chan said on his Sunday blog that Hong Kong will hold its first eCommerce festival in August to help local brands expand into mainland China. While Hong Kong has seen an increase in online retail sales over the past few years, there is still considerable room for growth when compared with the mainland, according to Chan. 

The festival will cover six major categories, including clothing accessories, personal care and cosmetics, household products, food and beverages, digital toys and nutritional supplements, said Chan.  

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