Hong Kong retail sales surge by 1.9% YOY in February

Hong Kong’s retail sales for February have slightly increased to reach HK$33.8bn provisionally when compared to a year ago due to the recovery in inbound tourism.

According to the Census and Statistics Department (C&SD), the value of total retail sales in February 2024 increased by 1.9% compared with the same month in 2023. The revised estimate of the value of total retail sales in January 2024 increased by 0.9% compared with a year earlier.

For the first two months of 2024 taken together, it was provisionally estimated that the value of total retail sales increased by 1.4% compared with a year ago.

Of the total retail sales value in February 2024, online sales accounted for 6.9%. The value of online retail sales in that month, provisionally estimated at HK$2.3 billion, decreased by 9.9% compared with one year ago.

The revised estimate of online retail sales in January 2024 decreased by 21.2% compared with a year earlier. The revised estimate of the volume of total retail sales in January 2024 decreased by 1.2% compared with a year earlier. For the first two months of 2024 taken together, the provisional estimate of the total retail sales decreased by 0.4% in volume compared with the same period in 2023.

In interpreting these figures, it should be noted that retail sales tend to show greater volatility in the first two months of a year due to the timing of the Lunar New Year.

Analysed by broad type of retail outlet in descending order of the provisional estimate of the value of sales and comparing the combined total sales for January and February 2024 with the same period a year earlier, the value of sales of jewellery, watches and clocks, and valuable gifts increased by 8.8%.

This was followed by sales of other consumer goods not elsewhere classified (+10.7% in value); commodities in supermarkets (+1.0%); wearing apparel (+7.8%); food, alcoholic drinks and tobacco (+0.1%); medicines and cosmetics (+21.7%); footwear, allied products and other clothing accessories (+4.8%); books, newspapers, stationery and gifts (+20.1%); and furniture and fixtures (+2.9%).

A government spokesman said that taking the first two months of 2024 together, the value of retail sales rose modestly over a year earlier. Looking ahead, the spokesman added that as handling capacity continues to recover and more mega events are staged, inbound tourism is expected to revive further and benefit the retail sector.

Rising household income and the Government's initiatives in boosting consumption sentiment should also provide support, though changes in consumption patterns of residents and visitors will continue to pose challenges.

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