Hong Kong retail sales down 10.1% in August

It was due to changing consumption patterns, a strong Hong Kong dollar, and increased summer travel.

Hong Kong's total retail sales for August were provisionally estimated at $29.2b, down 10.1% from the same month last year, according to the Census & Statistics Department. 

After adjusting for price changes, the volume of total retail sales fell by 11.8% year-on-year (YoY). Online sales represented 8% of the total retail sales value, estimated at $2.3b, showing a slight decline of 0.5% compared to August 2023.

Several categories saw significant YoY declines in sales, including jewellery, watches, and clocks (-24%); other consumer goods not elsewhere classified (-5%); wearing apparel (-13.4%); electrical goods and durable consumer goods (-2.8%); department stores (-15.8%); motor vehicles and parts (-35.1%); fuels (-9.9%); footwear and clothing accessories (-6.3%); furniture and fixtures (-21.3%); Chinese drugs and herbs (-11.9%); and optical items (-17%). 

Conversely, food, alcoholic drinks, and tobacco sales rose by 0.2%, whilst medicines and cosmetics increased by 4.5%, and books, newspapers, stationery, and gifts were up by 3%.

The decline in retail sales is attributed to changing consumption patterns, a strong Hong Kong dollar, and increased outbound travel during the summer holidays. The retail sector is also expected to continue facing challenges. 

However, the government pointed out that central government measures benefiting Hong Kong and local initiatives to boost market sentiment could help retail businesses. 

Moreover, ongoing economic growth, rising employment earnings, and a more favorable exchange rate for the Hong Kong dollar, along with potential cuts in US interest rates, may also support the retail sector.