H. Kong’s retail sales declines 9.7 YoY in June

Hong Kong retail sales experienced a 9.7 per cent year-on-year decline in June, marking the fourth consecutive month of contraction. The value of retail sales fell to HK$29.9 billion ($3.83 billion), following double-digit declines in April and May.

While the rate of decline has narrowed compared to previous months, the government has cautioned that the retail sector will continue to face challenges in the near term.

Factors such as changing consumer patterns and the strength of the Hong Kong dollar have contributed to the ongoing slump.

In volume terms, retail sales dropped by 11.2 per cent year-on-year, highlighting the persistent weakness in consumer spending. For the first half of 2024, total retail sales value decreased by 6.6 per cent compared to the same period last year.

Despite an increase in visitor arrivals, with June seeing 3.132 million visitors (up 14 per cent year-on-year), the retail sector has struggled to recover.

Sales of jewellery, watches, clocks, and valuable gifts continued to decline, dropping 23.1 per cent in June. Similarly, sales of clothing, footwear, and accessories fell by 9.1 per cent from 17.9 per cent in May.

Attribution: Reuters