Retail sales up 12.9% to $40.5b in May

The retail boost comes from strong tourist arrivals in recent months.

The value of total retail sales continue to gain momentum after rising 12.9% YoY to a provisional estimate of $40.5b in May amidst a sustained recovery in inbound tourism, according to the Census & Statistics Department.

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“All-time high mainland tourists arrivals in the first four months of 2018, combined with a robust wealth effect and an improvement in consumer sentiment, along with new infrastructure initiatives, all contribute to a positive outlook for the local retail sector,” Michael Cheng, Asia Pacific and Hong Kong/China consumer markets leader at PwC said in an earlier report.

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Sales of jewellery, watches, clocks and valuable gifts continued to lead the sector’s recovery after posting double digit growth at 23.8% followed by medicines and cosmetics at 18.7%.

Department stores and supermarkets also witnessed higher commodity sales at 16.7% and 2.8% respectively.

Sales for fuels, optical shops; and footwear, allied products and other clothing accessories also went up 17.5%, 13.9% and 11.9% respectively.

Hong Kong’s retail sector is zooming into full-fledged recovery with accounting firm PwC expecting sales to hit $484b in 2018 and $494b by 2020 following a protracted downturn that has seen big brands like Ralph Lauren closing up shop.