H. Kong retail sales slide 11.5% YoY in May

Hong Kong’s retail sector continues to struggle as May sales dropped by 11.5 per cent year-on-year to HK$30.5 billion ($3.90 billion), marking the third consecutive month of decline.

Both the value and volume of sales decreased, with volume sales falling by 12.9 per cent compared to May 2023.

Government officials attribute the slump to several factors, including a surge in outbound travel by Hong Kong residents, a strong Hong Kong dollar, and a high base for visitor spending in May 2023.

The government is optimistic despite challenges. They believe new measures, like expanding the Individual Visit Scheme for mainland Chinese independent travellers and increasing duty-free allowances, will boost spending.

Industry experts like Bond Law, an executive director of the Hong Kong Retail Management Association, echo this sentiment, hoping the duty-free increase will attract more tourists, particularly from the Greater Bay Area.

In May, visitor arrivals rose by 20.2 per cent to 3.398 million, but luxury retail sales, including jewellery, watches, and gifts, fell by 21.4 per cent compared to May 2023. Sales of clothing, footwear, and accessories also dropped by 17.9 per cent.

Attribution: Reuters