HK retail sales see significant drop in March

Hong Kong’s retail sales for March have dropped 7% when compared to a year ago, partly due to a high base of comparison for visitor spending and the Easter holidays.

According to the latest figures released by the Census and Statistics Department, the value of total retail sales in March 2024 was provisionally estimated at HK$31.2 billion. For the first quarter of 2024, it was provisionally estimated that the value of total retail sales decreased by 1.3% compared with the same period in 2023.

The revised estimate of the combined value of total retail sales in January and February 2024 increased by 1.4% compared with the same period a year earlier. 

Of the total retail sales value in March 2024, online sales accounted for 7.8%. The value of online retail sales in that month, provisionally estimated at $2.4 billion, decreased by 4.7% 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 March 2024 with a year ago, the value of sales of jewellery, watches and clocks, and valuable gifts decreased by 17.7%.

This was followed by sales of commodities in supermarkets (-3.4% in value); wearing apparel (-17.5%); food, alcoholic drinks and tobacco (-11.3%); commodities in department stores (-14.1%); electrical goods and other consumer durable goods not elsewhere classified (-15.5%); fuels (-14.5%); furniture and fixtures (-3.3%); footwear, allied products and other clothing accessories (-10.7%); Chinese drugs and herbs (-5.8%); and optical shops (-10.1%).

On the other hand, the value of sales of other consumer goods not elsewhere classified increased by 8.7% in March 2024 over a year earlier. This was followed by sales of medicines and cosmetics (+8.9% in value); motor vehicles and parts (+7.6%); and books, newspapers, stationery and gifts (+6.8%).

A government spokesman said that the value of total retail sales turned to a fall in March, partly due to a high base of comparison for visitor spending and the Easter holidays. 

Looking ahead, the spokesman added that further revival of inbound tourism and rising household income should remain supportive to the retail sector. “The government's efforts to promote a mega event economy and boost sentiment should also help. Yet, the changing consumption patterns of visitors and residents may continue to pose challenges. The government will continue to monitor the situation,” the spokesperson added.

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