The tightening of social-distancing regulations helped fuel a 23.1-per-cent decline in Hong Kong retail sales in July.
Nevertheless, the decline was sharper than expected given July last year was the first full month when retail was affected by the outbreak of social unrest sparked by the proposed anti-extradition law, creating a lower base for this year’s July figures.
A government spokesman said that while Hong Kong’s Covid-19 situation has stabilized since July, potentially improving consumer sentiment, the retail business environment will continue to be “very difficult in the near term” with inbound tourism remaining at a standstill.
The decline in Hong Kong retail sales in July was only marginally less than June’s adjusted 24.7-per-cent drop.
For the first seven months of this year, Hong Kong retail sales have dropped by 32.1 percent compared with the same period last year. However, on a more positive note, retail sales for the three months to July rose by 16.9 percent over the prior quarter.
Reflecting on the limitations on restaurant and cafe trading, the value of sales in supermarkets in July surged 26.5 percent over last year’s figures. Sales of fuels rose by 3.8 percent and of furniture and fixtures by 0.3 percent.
Every other retail category recorded a decline for the month, with the greatest impact on the overall decline being sales of food, tobacco, and liquor, down by 12.9 percent. In descending order of impact, declines were posted of 7.2 percent for miscellaneous consumer goods, 53.7 percent for jewelry and watches, and 5.6 percent for electrical goods and other consumer durables.
Sales in department stores fell by 28.8 percent, of apparel by 42.5 percent, of medicines and cosmetics by 50.9 percent, motor vehicles and parts by 13.1 percent, books, newspapers, stationery, and gifts by 41 percent, of Chinese drugs and herbs by 26.5 percent, of footwear and accessories by 53.6 percent, and at optical shops by 37 percent.