Research
Hong Kong retail sales in September were down 18.3 percent in the same month last year, but the decline was less than in August. The luxury sector again took the biggest hit.
Census and Statistics Department data released Friday provisionally estimated sales at HK$29.9 billion. The revised estimate for August’s decline was 22.9 percent, with sales for the third quarter down 15.1 percent on the second quarter, and by 19.5 percent year on year, almost on a par with 1998’s third-quarter record decline during the financial crisis.
Year-to-date, sales are down by 7.3 percent.
A government spokesman described the decline as “significant” as “local social incidents continued to take a heavy toll on inbound tourism and consumption-related activities”.
“As protests involving violence continue to deter tourists and reduce local consumption, and the subdued economic outlook also dampens consumer sentiment, the performance of retail sales is likely to stay weak in the near term.”
Hong Kong retail sales of jewelry, watches and luxury goods fell 40.8 percent during the month, which was less than the 50-plus percent that some retailers were fearing. Department-store sales fell by 25.6 percent, apparel by 26.3 percent, accessories by 16.6 percent, and medicines and cosmetics by 21.7 percent.
Perhaps the greatest difference between August and September was the obvious impact of locals spending less – to date the protests have had the greatest effect on retailers serving the inbound tourist market. Supermarket sales fell by 2.6 percent in September; food, alcohol and tobacco sales by 13.8 percent; furniture and fixtures by 7.2 percent; books, newspapers, stationery, and gifts by 9.6 percent; and motor vehicles and parts by 16.1 percent.
Sales of Chinese drugs and herbs were down 18.2 percent, of electrical goods by 1.4 percent and at optical shops by 15.8 percent.
The only category to show growth in September was fuel, up by 5.9 percent.
