Hong Kong’s retail sales fell in January amid a slowdown in demand for luxury goods in the municipality and a change in the timing of the Lunar New Year.
Revenue from jewelry, watches, clocks and valuable gifts decreased 18% year on year to HKD 4.46 billion ($573.08 million) for the month, the municipality’s Census and Statistics Department reported Monday. The figure was also down 4% from the previous month. Sales across all retail categories dropped 3.2% to HKD 35.34 billion ($4.55 billion).
The decline is partly the result of a change in the timing of the Lunar New Year. The holiday took place on January 29 this year, compared to February 10 last year, leading to more shopping for the festivities taking place in December, versus at the start of the year, as happened in 2024.
The drop is also due to an unfavorable comparison with the same month a year ago, which benefited from the revival of tourism when the border between China and Hong Kong reopened after the Covid-19 pandemic. The municipality derives much of its luxury revenue from tourists — in large part from China — who come to purchase goods. Additionally, over the past few months, many Hong Kong residents have been spending money while traveling abroad rather than domestically.
“Looking ahead, the near-term performance of the retail sector [will] continue to be affected by the change in consumption patterns of visitors and residents,” a government spokesperson said. “Nevertheless, the government’s rollout of various measures to boost the mainland economy and benefit Hong Kong, coupled with…proactive efforts to promote tourism development and boost local sentiment, as well as increasing employment earnings, [will] benefit the sector.”
Image: Mongkok Street shopping area in Hong Kong. (Shutterstock)
