Hong Kong's retail sales up 40.9% in March

Hong Kong's retail sales in March this year have surged by 40.9% compared with a year earlier as consumer and visitor spending continued to improve.

According to the latest figures released by the Census and Statistics Department (C&SD), the value of total retail sales in March, provisionally estimated at HK$33.6 billion, increased by 40.9% compared with the same month in 2022. The revised estimate of the combined value of total retail sales in January and February 2023 increased by 17.3% compared with the same period a year earlier.

Of the total retail sales, online sales accounted for 7.6%. The value of online retail sales in March, provisionally estimated at $2.6 billion, dropped by 8.6% compared with a year earlier. The revised estimate of the combined value of online retail sales in January and February 2023 decreased by 3.8% compared with the same period a year earlier. For the first quarter of 2023, it was provisionally estimated that the value of online retail sales decreased by 5.4% compared with the same period in 2022.

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Analysed by broad type of retail outlet, the value of sales of jewellery, watches and clocks, and valuable gifts increased by 165.0%. This was followed by sales of other consumer goods not elsewhere classified (+38.2% in value); wearing apparel (+136.0%); food, alcoholic drinks and tobacco (+14.0%); commodities in department stores (+37.2%); medicines and cosmetics (+64.4%); motor vehicles and parts (+44.7%); fuels (+14.8%); footwear, allied products and other clothing accessories (+187.9%); furniture and fixtures (+8.4%); Chinese drugs and herbs (+44.3%); books, newspapers, stationery and gifts (+34.1%); and optical shops (+137.8%).

On the other hand, the value of sales of commodities in supermarkets decreased by 6.5% in March 2023 over a year earlier. This was followed by sales of electrical goods and other consumer durable goods not elsewhere classified (-8.2% in value).
 
Based on the seasonally adjusted series, the provisional estimate of the value of total retail sales increased by 12.0% in the first quarter of 2023 compared with the preceding quarter, while the provisional estimate of the volume of total retail sales increased by 10.8%.

A government spokesman said that the value of total retail sales surged further in March over a year earlier as consumer and visitor spending continued to improve, though the low base of comparison also contributed.

Looking ahead, the spokesman pointed out that the recovery of inbound tourism and private consumption should continue to benefit the retail sector. The disbursement of a new round of consumption vouchers will render further support.

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