Hong Kong retail sales likely to reach $370b in 2022

This reflected a 5% year-on-year growth.

Retail sales in Hong Kong are expected to rise by 5% to $370b in 2022, should the city partially reopen in the last two months of the year, the PwC projected.

Total retail sales dropped by 2.9% in the first five months of the year despite an 11.7% growth seen in April. 

During this period, supermarkets led with a 4% rise in sales, linked to the higher than usual shopping levels of Hong Kong shoppers staying at home; whilst clothing and footwear dropped the largest due to social distancing measures in February and march. 

“Due to the ongoing pandemic and travel restrictions, as well as other macro factors, the retail market in Hong Kong was still not able to bounce back early this year,” Michael Cheng, PwC Asia Pacific, Mainland China,, and Hong Kong Consumer Markets Leader, said. 

"While a full-scale border re-opening is unlikely to happen in the short-term, it is possible that Hong Kong’s quarantine rules for incoming travellers could be further relaxed.”

Read more: Weaker retail sales to put pressure on HK shop rentals: report

Cheng said local consumption will remain the key focus as the Hong Kong government readies to roll out the second phase of the consumption voucher distribution scheme. 

“Hopefully the retail industry can gain strong support from the new Chief Executive and his governing team to promote recovery and long-term development,” he said. 

The retail industry could also get a boost from the 89.1% vaccination rate seen in mid-July, the two major sports event in November that could invite more tourists in the city.