Retail sales in Hong Kong took a significant hit in August, dropping by 10.1 percent compared to the same period last year. This marks the sixth consecutive month of year-on-year declines, following a trend of decreasing sales. In July, sales were down by 11.8 percent, and in June, there was a 9.7 percent decrease.
The most noticeable drops in sales were seen in commodities sold in supermarkets, as well as jewellery, watches, clocks, and valuable gifts. These sectors experienced the most dramatic declines, reflecting changing consumer patterns and other factors impacting retail sales.
For the first eight months of the year, the total value of retail sales decreased by 7.7 percent compared to the previous year. A government spokesperson attributed this decline to various factors such as changing consumption patterns, the strong Hong Kong dollar, and increased outbound travel by residents during the summer holidays.
Bond Law, the executive director of the Hong Kong Retail Management Association, expressed a pessimistic view on the outlook for retail sales for the remainder of the year. Despite recent rate cuts and stock market rallies, Law believes that uncertainties still loom over the retail sector. While rate cuts and a booming stock market could potentially boost consumer confidence, the overall forecast for retail sales in 2024 remains bleak.
Looking ahead, officials anticipate that retailers will continue to face challenges. However, economic growth, rising employment earnings, and the recent US interest rate cut could provide some support to the struggling sector. Despite the headwinds, there is hope that these factors may help stabilize retail sales in the coming months.