Hong Kong retail sales grew by 15 percent year-on-year in April, beating estimates, official data showed yesterday, as consumption sentiment and visitor arrivals continued to improve.

The value of total retail sales in April increased to HK$34.7 billion, according to provisional data provided by the Census and Statistics Department, marking growth for a fifth consecutive month and beating a market expectation of 13.8 percent. That also compared with a revised rise of 40.8 percent in March.

In terms of volume, total retail sales increased by 13.3 percent in April from a year earlier, versus a 39.3 percent year-on-year increase in March.

For the first four months this year, the total value of retail sales advanced by 21.7 percent from the same period in 2022, with a 19.9 percent growth in volume during the period.

The April outcome was boosted by sales of jewellery, watches and clocks, and valuable gifts, which jumped 75.2 percent from a year earlier, suggesting an impact from visitors. This was followed by a 38.6 percent rise in ready-to-wear apparel and a 34.8 percent growth in medicines and cosmetics.

In contrast, online sales dropped 11.9 percent to HK$2.2 billion in April from the previous year, resulting in a 6.9 percent decline for the first four months.

Looking ahead, a government spokesman said the revival of inbound tourism and local consumption demand should continue to help the retail sector’s performance. The disbursement of consumption vouchers will provide further support, he added.

This came as Chief Executive John Lee Ka-chiu said at a summit ahead of the data announcement that the retail industry has shown good recovery momentum and the economy continues to improve.

Hong Kong Retail Management Association chairwoman Annie Tse Yau On-yee, however, warned that the recovery of the retail industry in the SAR is still facing multiple challenges, including uncertainty in the external environment, rising rents and a shortage of talent.

Meanwhile, a survey by HKRMA, which interviewed 3,700 retail stores involving 61,000 staff, showed that retailers expect to see a single-digit to low double-digit growth in sales in the upcoming three months.

Billy Mak, an associate professor at Hong Kong Baptist University’s Department of Accountancy, Economics and Finance, also believes that the growth in the retail industry will likely slow down and may not return to pre-pandemic levels soon.

https://www.thestandard.com.hk/section-news/section/11/252988/Retail-sales-jump-15pc

Category: Hong Kong