Hong Kong Business News

The value of total retail sales in May, provisionally estimated at $30.5 billion, decreased 11.5% compared with the same month last year, the Census & Statistics Department announced today.

After netting out the effect of price changes over the same period, the provisional estimate of the volume of total retail sales for the month was 12.9% lower year-on-year.

Of the total retail sales value in May, online sales accounted for 8.7%. Provisionally estimated at $2.6 billion, the value of online retail sales increased 21.9% compared with a year earlier.

The value of sales of commodities in supermarkets decreased 3.4% in the month compared with a year earlier.

This was followed by sales of other consumer goods not elsewhere classified (-8.9%); jewellery, watches and clocks, and valuable gifts (-21.4%); wearing apparel (-18.8%); food, alcoholic drinks and tobacco (-4.1%); commodities in department stores (-21.1%); motor vehicles and parts (-29.8%); fuels (-11.6%); footwear, allied products and other clothing accessories (-11.7%); furniture and fixtures (-15.9%); Chinese drugs and herbs (-15.1%); and optical shops (-18.4%).

By contrast, the value of sales of medicines and cosmetics increased 2.5% in May year-on-year. Also down were sales of electrical goods and other consumer durable goods not elsewhere classified (+2.2%); and books, newspapers, stationery and gifts (+6.9%).

The Government said that the value of total retail sales continued to decline notably in May from a year earlier, mainly affected by changes in the consumption patterns of visitors and residents as well as the strength of the Hong Kong dollar.

It added that the share of online retail sales in total retail sales value has continued to increase in recent months, reflecting that the retail sector can seize new opportunities by adapting to changing consumption patterns through changing sales mode and venturing into new businesses.

Looking ahead, the Government highlighted that the retail sector may still face some challenges in the near term. However, the central government's recently announced measures benefitting Hong Kong, including the further enhanced Individual Visit Scheme and the increase of duty-free allowance for luggage articles for Mainland resident visitors, should help stimulate retail businesses.

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