Customers form a long queue outside a luxury goods store in Tsim Sha Tsui, Kowloon, on May 1, 2023. (EDMOND TANG / CHINA DAILY)
Buoyed by a rise in tourist arrivals and improved consumer confidence, Hong Kong’s retail sector continued its positive growth trajectory in July, with a year-on-year increase of 16.5 percent, according to official figures released on Thursday.
The provisional estimate of the value of total retail sales in July reached HK$33 billion ($4.21 billion), marking the eighth consecutive month of growth, the Census and Statistics Department said. The figure was slightly lower than the HK$33.1 billion observed in June.
Preliminary estimates of the value for the first seven months of 2023 saw an increase of 20.1 percent year-on-year, reversing the declining trend recorded in the same period a year earlier
Preliminary estimates of the value for the first seven months of 2023 saw an increase of 20.1 percent year-on-year, reversing the declining trend recorded in the same period a year earlier.
Online sales accounted for 6.8 percent of the total retail sales in July with a provisionally estimated value at HK$2.3 billion, representing 1.4 percent growth from a year ago.
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“The value of total retail sales continued to increase visibly in July over a year earlier alongside the increase in visitor arrivals and positive consumption sentiment,” a government spokesperson said on Thursday.
According to a survey conducted by the Hong Kong Retail Management Association, which included over 4,000 retailers and 78,000 workers, more than 60 percent of respondents reported single-digit growth in retail performance during the summer vacation months of July and August, compared to the same period of 2019 before the outbreak of the COVID-19 pandemic.
“This growth was primarily driven by retail categories associated with tourism, while categories catering to local consumption experienced a slight decline due to large-scale outbound travel during the summer break,” HKRMA Executive Director Bond Law said.
Jewelry, watches and clocks, and valuable gifts posted sales growth in July of 19.8 percent on a yearly basis. Wearing apparel and commodities in department stores increased 34.3 percent and 25.6 percent, respectively.
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Sales of commodities in supermarkets, meanwhile, dropped by less than 0.05 percent year-on-year in July.
Looking ahead, the government spokesperson said the revival in inbound tourism should continue to benefit the retail sector, and improved labor market conditions and government measures to support consumption should also help.
However, about 40 percent of surveyed retailers said they expect the retail performance in August to be weaker than that for July, as distribution of the second instalment of consumption vouchers on July 16 stimulated the local retail market while there’s no such stimulus in August.
Also, the survey showed that the retail market in popular tourism destinations such as Tsim Sha Tsui and Causeway Bay has shown the strongest performance during the two-month vacation. Law predicted that with a decrease in inbound tourists after the summer holiday season, the retail sector is expected to be weaker in September than it was in July and August.
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Regarding the government’s recent efforts to revitalize the city’s nighttime economy, many surveyed retailers expressed concerns about a shortage of personnel, as they said they do not have enough staff to extend service hours.
