August retail sales down 5.4% YoY to HK$37.9 billion

Sluggish inbound tourism is blamed.

The total retail sales value in August decreased 5.4% year on year (YoY) to HK$37.9 billion.

According to a release from Knight Frank, slower inbound tourism is a reason.

Further, total visitor arrivals in August decreased 6.6% YoY, more than the decline of 2.9% in July.

Here's more from Knight Frank:

Prime street shop landlords were under pressure in rental negotiations. For instance in Causeway Bay, a number of tenants in Russell Street reportedly received over 30% rental concessions on lease renewal.

Having dropped about 10% during the first three quarters, rents of prime street shops are expected to drop further this year.

However, there are signs of stabilisation as spaces are usually snapped up quickly provided discounts are offered.

The recent rental corrections will bring new tenants to and promote diversity in prime streets, changing the landscape and benefiting the future local retail market in the longer term.