Retail sales drop by 7.3% YoY in November 2024

Online sales accounted for 9.3% of the total, a 7% year-on-year decrease.

The value of retail sales in November 2024, estimated at $31.7b, decreased by 7.3% year-on-year (YoY), the Census & Statistics Department announced.

After adjustments for price changes, the volume of total retail sales for the month showed an 8.3% YoY decline.

Online sales accounted for 9.3% of the total, a 7% YoY decrease. Sales in key categories also saw significant declines, with jewellery, watches, clocks, and valuable gifts falling by 5.4% YoY. 

Other declines were also seen amongst lectrical goods and other consumer durables not elsewhere classified (-18%) decline followed by motor vehicles and parts (-34.4%), furniture and fixtures (-20.5%), Chinese drugs and herbs (-19.3%), department store commodities (-12.3%), and optical shops (-11.8%). 

In contrast, some categories showed growth. Sales of commodities in supermarkets increased by 3.5% YoY, followed by other consumer goods not elsewhere classified with a 1.4% rise, and sales of food, alcoholic drinks, and tobacco up by 0.4%.

The government attributed the overall decline in retail sales to shifting consumption patterns and the impact of a relatively strong Hong Kong dollar. These are expected to continue weighing on the sector, particularly as they influence spending behaviour amongst both residents and visitors.

Nevertheless, the various measures and initiatives introduced to boost market sentiment and enhance employment earnings could support local spending and improve the retail sector's performance in the coming months, it added.