HK retail sales see significant drop in November 2022

Hong Kong’s retail sales have dropped 4.2% in November last year compared with the same month in 2021, the largest decrease since March last year. This is due to the softening of retail businesses following the improvement in the preceding month.

According to the latest figures released by the Census and Statistics Department, the revised estimate of the value of total retail sales in October 2022 increased by 4.0% compared with a year earlier. For the first 11 months of 2022 taken together, it was provisionally estimated that the value of total retail sales decreased by 1.1% compared with the same period in 2021.

Of the total retail sales value in November 2022, online sales accounted for 12.8% out of the total retail sales value in November 2022. The value of online retail sales in the month provisionally estimated at $3.8 billion, which increased by 9.4% compared with the same month in 2021.

The revised estimate of online retail sales in October 2022 increased by 35.1% compared with a year earlier. For the first 11 months of 2022 taken together, it was provisionally estimated that the value of online retail sales increased by 21.9% compared with the same period in 2021.

After netting out the effect of price changes over the same period, the provisional estimate of the volume of total retail sales in November 2022 decreased by 5.3% compared with a year earlier. The revised estimate of the volume of total retail sales in October 2022 increased by 2.5% compared with a year earlier. For the first 11 months of 2022 taken together, the provisional estimate of the total retail sales decreased by 3.6% in volume compared with the same period in 2021.

Analysed by broad type of retail outlet in descending order of the provisional estimate of the value of sales and comparing November 2022 with November 2021, the value of sales of other consumer goods not elsewhere classified decreased by 6.0%. This was followed by sales of jewellery, watches and clocks, and valuable gifts (-8.3% in value); commodities in department stores (-19.3%); wearing apparel (-16.4%); medicines and cosmetics (-4.2%); fuels (-1.9%); furniture and fixtures (-6.7%); footwear, allied products and other clothing accessories (-8.1%); books, newspapers, stationery and gifts (-5.1%); Chinese drugs and herbs (-4.7%); and optical shops (-0.2%).

A government spokesman said that retail businesses did not see much growth in November last year following the improvement in the previous month. For October and November combined, retail sales value held largely stable compared to a year earlier.

Looking ahead, the spokesman pointed out that while tightened financial conditions will continue to weigh on local consumption demand, the further relaxation of social distancing measures and continued improvement in labour market conditions will provide support. In addition, the expected increase in visitor arrivals should benefit retail sales performance.

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