Hong Kong Business News

The value of total retail sales in August, provisionally estimated at $29.2 billion, decreased 10.1% compared with the same month in 2023, 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 11.8% lower year-on-year.

Of the total retail sales value in August, online sales accounted for 8%. Provisionally estimated at $2.3 billion, the value of online retail sales decreased 0.5% compared with a year earlier.

The value of sales of commodities in supermarkets dropped 3.6% in August year on year.

There were also declines in sales in the following categories: jewellery, watches and clocks, and valuable gifts (-24%); other consumer goods not elsewhere classified (-5%); wearing apparel (-13.4%); electrical goods and other consumer durable goods not elsewhere classified (-2.8%); commodities in department stores (-15.8%); motor vehicles and parts (-35.1%); fuels (-9.9%); footwear, allied products and other clothing accessories (-6.3%); furniture and fixtures (-21.3%); Chinese drugs and herbs (-11.9%); and optical items (-17%)

By contrast, the value of sales of food, alcoholic drinks and tobacco rose 0.2% in August over a year earlier. Sales of medicines and cosmetics increased 4.5%, while sales of books, newspapers, stationery and gifts were up 3%.

The Government said the value of total retail sales recorded a year-on-year decline in August amid the continued impact of the change in consumption patterns, the relatively strong Hong Kong dollar, and increased outbound travel by residents during the summer holidays, among other factors. 

Looking ahead, the retail sector will still face challenges in the near term. Nonetheless, the central government's various measures benefitting Hong Kong, as well as the local government's various initiatives to boost market sentiment and support the development of the sector, would benefit retail businesses.

Continued economic growth, rising employment earnings, and an easing Hong Kong dollar exchange rate alongside the US interest rate cut, would also provide support to the retail sector, the Hong Kong SAR Government added.