HK retail sales up 19.6% in June due to recovery of inbound tourism

Hong Kong retail sales has surged by 19.6% year-on-year in June this year compared to a year ago, due to the recovery of inbound tourism and positive consumption sentiment.

According to the official figures released by Census and Statistics Department (C&SD), the value of total retail sales in June 2023, provisionally estimated at HK$33.1bn, increased by 19.6% compared with the same month in 2022. For the first half of 2023, it was provisionally estimated that the value of total retail sales increased by 20.7% compared with the same period in 2022.

Online sales accounted for 6.7% of the total retail sales value in June. The value of online retail sales in that month, provisionally estimated at HK$2.2bn, decreased by 3.3% compared with the same month in 2022. For the first half of 2023, it was provisionally estimated that the value of online retail sales decreased by 6.2% compared with the same period in 2022.

Analysed by broad type of retail outlet in descending order of the provisional estimate of the value of sales and comparing this and last June,  the value of sales of jewellery, watches and clocks, and valuable gifts increased by 64.3%.

This was followed by sales of other consumer goods not elsewhere classified (+20.5% in value); wearing apparel (+34.2%); food, alcoholic drinks and tobacco (+6.6%); commodities in department stores (+4.2%); medicines and cosmetics (+49.4%); electrical goods and other consumer durable goods not elsewhere classified (+11.3%); motor vehicles and parts (+24.9%); footwear, allied products and other clothing accessories (+26.1%); Chinese drugs and herbs (+17.1%); books, newspapers, stationery and gifts (+19.3%); and optical shops (+29.9%).

On the other hand, the value of sales of commodities in supermarkets decreased by 3.5% in June 2023 over a year earlier. This was followed by sales of fuels (-19.1% in value); and furniture and fixtures (-6.4%).

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A government spokesman said that the value of total retail sales continued to rise notably in June over a year earlier due to the recovery of inbound tourism and positive consumption sentiment.

The spokesman added that the outlook for retail sales remained favourable. “While visitor arrivals should increase further in the coming months, improved labour market conditions and the government's various measures to boost the momentum of the economic recovery, such as the disbursement of consumption vouchers, should render support to local consumption demand,” the spokesman said.

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