Retail sales drop 4.1% y/y in May

Decline in jewellery sales to blame.

Hong Kong’s retail sales fell by 4.1% y/y in May to HK$39.0bn, marking the third consecutive month of decline.

According to a research note from Barclays, there is a positive side, and that is May’s 4.1% retail sales decline was less severe than April’s 9.9% (revised) y/y decline.

Further, the report noted that, similar to April, the decline in jewellery sales was to blame for the contraction in retail sales. Jewellery sales fell 24.5% y/y in May while consumer durables also fell by 5.2% y/y.

On the positive side, clothing and footwear sales grew by 5.0% y/y and other consumer goods also increased by 6.4% y/y. Netting out the effect of price changes over the same period, the volume of retail sales in May decreased by 4.7% y/y, Barclays said.

It also said that tn the first five months, Hong Kong’s retail sales were down by 0.2% y/y, while retail sales volume was up by 0.1%.