Retail sales decline 11.5% in May

The decline was due to the changes in consumer spending and the weakening Hong Kong dollar.

In May, the value of total retail sales, provisionally estimated at $30.5b, decreased by 11.5% year-on-year (YoY). This is still more than double the provisional estimate of 6.1%, the Census and Statistics Department (C&SD) reported.

This decline is attributed to changes in the consumption patterns of visitors and residents and the strength of the Hong Kong dollar.

Meanwhile, the value of online retail sales that month, provisionally estimated at $2.6b, increased by 21.9% YoY, despite an expected annual decrease of 1.0%. Of the total retail sales value in May 2024, online sales accounted for 8.7%.

In addition, the value of sales of motor vehicles and parts decreased by 29.8%. This downturn is followed by declines in jewellery, watches, clocks, and valuable gifts (-21.4%), commodities in department stores (-21.1%), and wearing apparel (-18.8%). Optical shops and furniture and fixtures also experienced drops of 18.4% and 15.9%, respectively.

Furthermore, sales of Chinese drugs and herbs decreased by 15.1%. Declines continued in allied products and other clothing accessories (-11.7%), fuels (-11.6%), and consumer goods (-8.9%). Lesser drops were seen in food, alcoholic drinks, and tobacco (-4.1%) and commodities in supermarkets (-3.4%).

On the flip side, the value of sales of medicines and cosmetics increased by 2.5% YoY, followed by sales of electrical goods and other consumer durable goods (+2.2%) and books, newspapers, stationery and gifts (+6.9%).