Hong Kong protests may drive retail-sales slump
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The ongoing Hong Kong protests are eroding the sales of the territory’s retailers according to the HKRMA.
“Depending on the performance of different retail categories, most member companies said the turnover in the first week of June recorded an average [decline] of double digits,” said the Hong Kong Retail Management Association in a statement we have translated from Chinese.
“Activities are spreading across districts, and members expect business to be greatly affected,” said the HKRMA, noting that July and August mark the traditional summer-holiday sales season, but recent large-scale demonstrations, including one in a Sha Tin shopping mall last Sunday, may deter manilanders from visiting the city.
“Large-scale parade activities have caused individual stores to suspend business. Not only are the retail companies under pressure, so is the income of store employees.”
The HKRMA said the industry is worried that the ongoing protests will impact on Hong Kong’s reputation as a safe city, a food capital, and a great place to shop.
“These large-scale parades have an impact on the life of the people and the business environment. If the situation persists, the association anticipates an annual decline of retail sales in the double digits.
“The association appeals to the government to solve the problem peacefully at an early date and bring social order back on track.”
The HKRMA called on employers and employees to maintain close communication during Hong Kong protests.
“In the face of special circumstances, employee safety should be the most important consideration.
Questions & Answers
Q.What is the immediate impact of the protests on retailers' sales?
What is the immediate impact of the protests on retailers' sales?
In the first week of June, most member companies of the HKRMA reported a double-digit decline in turnover. This impact varies depending on the specific retail categories affected by the ongoing demonstrations.
Q.Which traditional sales period is particularly at risk due to the protests?
Which traditional sales period is particularly at risk due to the protests?
July and August typically mark the summer-holiday sales season. However, recent large-scale demonstrations, including one in a Sha Tin shopping mall, may deter mainland visitors, impacting this crucial period.
Q.What wider concerns does the HKRMA have about the protests' long-term effects?
What wider concerns does the HKRMA have about the protests' long-term effects?
The HKRMA is worried that the ongoing protests will damage Hong Kong's reputation as a safe city, a food capital, and a prime shopping destination. They anticipate a double-digit annual decline if the situation continues.
Q.What actions has the HKRMA suggested to address the situation?
What actions has the HKRMA suggested to address the situation?
The HKRMA has appealed to the government to resolve the problem peacefully and restore social order swiftly. They also called on employers and employees to maintain close communication and prioritise employee safety during these special circumstances.
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