Hong Kong saw its retail sales drop at a slower pace in October as consumers continued to shy away from luxury purchases.
Revenue from jewelry, watches, clocks and valuable gifts slid 11% year on year to HKD 4.54 billion ($583.1 million) for the month, according to data the government’s Census and Statistics Department released last week. However, the decrease was more moderate than the previous month, when hard-luxury revenue fell 18%. Retail sales across all product categories slipped 3% to HKD 32.88 billion ($4.23 billion).
The decline also reflected an unfavorable comparison with the same period a year ago, when spending bounced back after the border reopened and tourists were allowed to return to Hong Kong from the mainland to purchase luxury goods. The municipality derives a large portion of its luxury revenue from tourists — primarily from China — who come there to purchase goods.
“The year-on-year decline of total retail sales value narrowed further in October,” a government spokesperson said. “On a seasonally adjusted basis, the value of total retail sales continued to increase month to month.”
Different initiatives the government put into place to spur retail sales should help them continue to improve, though it may take time for them to return to a positive level.
“Looking ahead, the mainland’s recent introduction of various measures to boost the economy would help support consumption sentiment and economic activities in Hong Kong,” the spokesperson added. “[That,] as well as increasing employment earnings, would be conducive to spending by both residents and visitors in the domestic market, though the change in their consumption patterns will continue to pose a constraint.”
Image: Tsim Sha Sui shopping district in Hong Kong. (Shutterstock)
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