Retail sales value in January grew 7% YoY

The total value is at $36.2b driven by the return of tourists.

The total retail sales value in January went up 7% year-on-year to $36.2b, which was supported by tourist arrivals, Knight Frank said.

The number of visitor arrivals and retail sales figures and tenants were more confident and willing to commit to large shops in areas.

Knight Frank added that the number of Chinese visitors also contributed to the growth as they go to casual shopping and dining in Hong Kong.

"We believe Hong Kong’s top position as a luxury shopping destination for Chinese tourists has changed slightly after the pandemic, so we expect retailers to adjust their sales strategies to focus more on affordable luxury goods to cater to growing demand from both locals and tourists," said Knight Frank in a report.

Its near-term outlook for retail sales remains "sanguine" as consumer sentiment has been driven by favourable employment numbers, inbound tourism, and the removal of mandatory masks.