2nd January 2025 – (Hong Kong) The Census and Statistics Department (C&SD) has published its latest retail sales figures for Hong Kong, revealing a concerning trend for November 2024. The total value of retail sales was provisionally estimated at HK$31.7 billion, marking a significant decline of 7.3% compared to the same month in 2023. Additionally, the revised figure for October 2024 showed a decrease of 2.8% year-on-year.
For the first eleven months of 2024, retail sales have seen a provisional overall decline of 7.1% compared to the same period last year. This downturn reflects ongoing challenges in the retail sector, driven by shifts in consumer behavior and the impact of a robust Hong Kong dollar.
In terms of online retail, sales accounted for 9.3% of the total in November 2024, with a provisional estimate of HK$2.9 billion. This segment also experienced a decrease, down 7.0% from November 2023. However, it’s worth noting that the revised estimate for online sales in October 2024 had increased by 8.4% compared to the previous year. For the first eleven months of 2024, online sales saw a smaller decline of 1.2% compared to the same timeframe in 2023.
When adjusting for price changes, the volume of total retail sales in November 2024 dropped by 8.3% year-on-year. The revised volume figure for October 2024 showed a decrease of 4.8%, leading to an overall provisional estimate for the first eleven months of 2024 that indicates an 8.7% decline in sales volume.
Analyzing the data by retail category reveals substantial declines across various sectors. Notably, sales of jewellery, watches, and clocks, as well as valuable gifts, fell by 5.4%. Other significant drops included electrical goods and consumer durables, which saw an 18.0% decrease, and wearing apparel, which dropped by 7.5%. Department store sales also suffered, declining by 12.3%, while sales of motor vehicles and parts plummeted by 34.4%.
Conversely, some segments showed resilience. Commodities sold in supermarkets increased by 3.5% in value compared to November 2023. Other consumer goods not classified elsewhere saw a 1.4% rise, and food, alcoholic beverages, and tobacco grew slightly by 0.4%.
On a seasonally adjusted basis, total retail sales value increased by 1.7% in the three months ending November 2024 compared to the preceding three-month period. The volume of total retail sales also saw a modest increase of 1.4% during the same timeframe.
A government spokesperson commented on the ongoing decline in retail sales, attributing it to changing consumption patterns among residents and visitors, along with the relatively strong value of the Hong Kong dollar. Looking ahead, the spokesperson indicated that these trends would likely continue to impact the retail sector’s performance.
Despite these challenges, there are signs of potential recovery. The Central Government’s initiatives aimed at revitalizing the Mainland economy are expected to benefit Hong Kong. This includes the recent resumption and expansion of the Individual Visit Scheme for Shenzhen, which could encourage increased spending from visitors.
Furthermore, local government initiatives to boost market sentiment and rising employment earnings are anticipated to positively influence spending behaviors among both residents and visitors.
