Hong Kong retail sales drop 14.7% in April

The sharp decline was mainly attributed to the timing of the Easter holidays.

The total retail sales in Hong Kong in April were provisionally estimated at $29.6b, a 14.7% decrease compared to the same month in 2023, the Census and Statistics Department announced.

Adjusting for price changes, the volume of retail sales showed a year-on-year (YoY) drop of 16.5%. Online sales, accounting for 8.2% of total retail, increased by 11.4% to $2.4b.

Various sectors experienced declines in sales values, including supermarkets which decreased by 3%; other consumer goods not elsewhere classified by 13.2%; jewellery, watches, and valuable gifts by 28.7%; wearing apparel by 23.6%; medicines and cosmetics by 7.1%; food, alcoholic drinks, and tobacco by 12.2%; electrical goods and other durable consumer goods by 26.5%; department stores by 21.5%; fuels by 9.6%; furniture and fixtures by 23%; footwear and accessories by 26.3%; books, newspapers, stationery, and gifts by 4.5%; Chinese drugs and herbs by 25.1%; and optical shops by 23.1%. However, sales of motor vehicles and parts surged by 58.5% YoY.

The government attributed the sharp decline in retail sales partly to the timing of the Easter holidays, which highlighted changing consumption patterns. Many residents traveled abroad, reducing local spending during and around their trips. 

Additionally, higher-than-usual rainfall in April and a high comparison base from the previous year's buoyant consumer sentiment, driven by the post-pandemic return to normalcy and the Consumption Voucher Scheme, were contributing factors.

The government noted that April 2023, excluding holidays, marked the highest retail sales since June 2019, driven by increased inbound visitor spending.

Looking ahead, the government acknowledged challenges from changing consumption patterns but remains optimistic due to rising visitor arrivals, employment earnings, and stabilised asset markets.