HK retail sales drop for 6 months in a row amid retail challenges

Hong Kong's retail sales have dropped for six months in a row, with its August retail sales declining by 10.1% compared to a year ago, amid the continued impact of the change in consumption patterns. 

According to the Census and Statistics Department, the retail sales reached HK$29.2 billion in August, a decrease of 10.1% compared to the previous year, continuing the decreased tendency from March.

Of the total retail sales value in August 2024, online sales accounted for 8.0%. The value of online retail sales in that month, provisionally estimated at HK$2.3 billion, decreased by 0.5% compared with the same month in 2023.

The revised estimate of online retail sales in July 2024 increased by 0.8% compared with a year earlier. For the first eight months of 2024 taken together, it was provisionally estimated that the value of online retail sales decreased by 0.2% compared with the same period in 2023.

Among all retail sectors, motor vehicles and parts were hit the most and decreased by 35.1% YOY in August, followed by sales of jewellery, watches and clocks, and valuable gifts, which recorded a 24% YOY decline. Meanwhile, sales of food, alcoholic drinks and tobacco have increased by 0.2% in August compared to a year ago.

The government spokesperson attributed the year-on-year decline to the continued impact of the change in consumption patterns, the relatively strong Hong Kong dollar, and increased outbound travels by residents during the summer holidays.

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 various initiatives to boost market sentiment and support the development of the sector, would benefit retail businesses.

Continued economic growth, rising employment earnings, and an easing Hong Kong dollar exchange rate alongside the US interest rate cut, would also provide support to the retail sector. 

Don't miss: HK retail sales drop 11.8% in July

Hong Kong’s retail sales in July 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.   

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