On July 2, the Census and Statistics Department of the Hong Kong Special Administrative Region Government released preliminary retail statistics for May: the provisional total sales value was estimated at HKD 30.5 billion, a decrease of 11.5% compared to the same month in 2023.
The provisional total sales value for the first five months of this year decreased by 6.1% compared to the same period in 2023.
Online sales accounted for 8.7% of the total retail sales value in May. The provisional estimate of online retail sales value in May was HKD 2.6 billion, up 21.9% compared to the same month in 2023. The revised estimate for April’s online retail sales value was up 11.5% compared to the same month in 2023. Compared to the same period in 2023, the provisional total online retail sales value for the first five months of this year decreased by 1.0% year-on-year.
After deducting the price changes during the period, the provisional total sales volume in May was estimated to have decreased by 12.9% compared to the same month in 2023. Compared to the same period last year, the provisional total sales volume for the first five months of this year decreased by 7.7% year-on-year.
By major retail categories, except for increases in the sales values of medicines and cosmetics (+2.5%), electrical goods and other unclassified durable consumer goods (+2.2%), and books, newspapers, stationery, and gifts (+6.9%), the provisional sales values of several categories in May showed declines, specifically:
- Sales value of supermarket goods decreased by 3.4%
- Sales value of other unclassified consumer goods decreased by 8.9%
- Sales value of jewelry, watches, and valuable gifts decreased by 21.4%
- Sales value of clothing decreased by 18.8%
- Sales value of food, alcoholic drinks, and tobacco decreased by 4.1%
- Sales value of department store goods decreased by 21.1%
- Sales value of motor vehicles and parts decreased by 29.8%
- Sales value of fuels decreased by 11.6%
- Sales value of footwear, related products, and other clothing accessories decreased by 11.7%
- Sales value of furniture and fixtures decreased by 15.9%
- Sales value of Chinese medicines decreased by 15.1%
- Sales value of optical shops decreased by 18.4%
For the three months ending in May 2024, compared to the previous three months, the seasonally adjusted provisional total retail sales value decreased by 3.7%, while the seasonally adjusted provisional total sales volume decreased by 4.6%.
A government spokesperson stated that the total retail sales value in May continued to decline significantly year-on-year, mainly due to changes in consumption patterns of tourists and residents, as well as the high exchange rate of the Hong Kong dollar. The high comparison base from the same period last year also had an impact.
Looking ahead, the spokesperson pointed out that the retail industry might still face some challenges in the short term. However, the recently announced favorable measures for Hong Kong, including further optimizing the Individual Visit Scheme and increasing the duty-free allowance for luggage items of Mainland tourists, should help promote local retail business. The strong promotion of events and economic activities by the Hong Kong Special Administrative Region Government will also provide support. Increased employment income and the recent stabilization of the asset market are beneficial to the retail industry.
Additionally, the spokesperson highlighted that the online retail sales value in May increased by more than 20% year-on-year, with its share of total retail sales continuing to rise in recent months. This indicates that adapting to changes in consumption patterns and innovating business models can bring new opportunities to the retail industry. The Hong Kong Special Administrative Region Government will continue to support SMEs in embracing digital transformation, including assisting the retail industry in adopting ready-made digital technology solutions through the Digital Transformation Support Pilot Scheme.
The spokesperson also noted that the overall economic situation in Hong Kong is positive. Overall investment expenditure continued to expand in the first quarter, and the latest commodity export values for April and May recorded double-digit year-on-year growth. The Hong Kong Special Administrative Region Government has made good progress in attracting businesses, capital, and talent from around the world to Hong Kong and will continue to consolidate traditional advantageous industries and accelerate the cultivation of potential new industries to enrich and diversify Hong Kong’s industrial development, thereby adding new momentum and enhancing the overall competitiveness of the economy.
According to the Hong Kong Tourism Board, the number of inbound tourists in May was 3.398 million, an increase of 20.2% compared to the same period last year, with 2.626 million Mainland tourists, a year-on-year increase of 14.9%.
｜Source: Census and Statistics Department of the Hong Kong Special Administrative Region Government, official press release
｜Image Credit: Free image website Pexels
｜Editor: LeZhi
