HK retail sales plunge 14.7% in April amid changing consumption patterns

Hong Kong’s retail sales for April have dropped 14.7% when compared to a year ago, twice the decline recorded a month ago. This is partly due to the changing consumer behaviour observed over the Easter holidays. 

According to the latest figures released by the Census and Statistics Department, the value of total retail sales in April 2024 was provisionally estimated at HK$29.6 billion. For the first four months of 2024, it was provisionally estimated that the value of total retail sales decreased by 4.7% compared with the same period in 2023.

The revised estimate of the value of total retail sales in March 2024 decreased by 7.0% compared with a year earlier. 

Of the total retail sales value in April 2024, online sales accounted for 8.2%. The value of online retail sales in that month, provisionally estimated at $2.4 billion, increased by 11.4% 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 April 2024 with April 2023, the value of sales of commodities in supermarkets decreased by 3.0%.

This was followed by sales of other consumer goods not elsewhere classified (-13.2% in value); jewellery, watches and clocks, and valuable gifts (-28.7%); wearing apparel (-23.6%); medicines and cosmetics (-7.1%); food, alcoholic drinks and tobacco (-12.2%); electrical goods and other consumer durable goods not elsewhere classified (-26.5%); commodities in department stores (-21.5%); fuels (-9.6%); furniture and fixtures (-23.0%); footwear, allied products and other clothing accessories (-26.3%); books, newspapers, stationery and gifts (-4.5%); Chinese drugs and herbs (-25.1%); and optical shops (-23.1%).

On the other hand, the value of sales of motor vehicles and parts increased by 58.5% in April 2024 over a year earlier.

A government spokesperson said the value of total retail sales declined notably in April from a year earlier because the Easter holidays rendered the effects of the changing consumption pattern of residents more visible.

A large number of residents made outbound trips during the Easter holidays, added the spokesperson. This not only affected their local consumption during their time away but also could have reduced consumption in the days before and after the trips.

“Besides, the unstable weather conditions in April this year, with higher-than-usual rainfall, also had some impact,” continued the spokesperson, “The relatively high base of comparison, attributable to buoyant consumer sentiment in the same period last year supported by the return to normalcy after the pandemic and the Consumption Voucher Scheme, was also relevant.”

Looking ahead, the spokesman added that the changing consumption patterns of visitors and residents would continue to present challenges to the retail sector. Nevertheless, the revival of inbound tourism, rising employment earnings, and the recent stabilisation of asset markets would provide support.

“The government’s strenuous efforts to promote a mega event economy and boost market sentiment would also help. The government will continue to monitor the situation,” added the spokesperson. 

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