Hong Kong retail sales slumped 21.4 percent in January, further than the 19.4 percent of December – but the worst is yet to come.
The Census and Statistics Department (C&SD) provisionally estimated Hong Kong retail sales at HK$37.8 billion (US$4.86 billion) but cautioned that the timing of Lunar New Year – on January 25 this year and February 5 last year – may have lessened the statistical impact of January’s data.
“Retail sales continued to record a sharp fall in January, notwithstanding the possible boost from the Lunar New Year, which fell in late January this year but early February last year,” said a government spokesperson.
This hints at a bleak outlook for February’s Hong Kong retail sales, given the advent of the coronavirus which saw inbound tourist numbers drop by 98 percent in what should have been one of the best trading months of this year.
The coronavirus hit just as the peak Lunar New Year holiday season kicked off, a time when thousands of mainlanders traditionally head across the border to holiday and shop. Sales during the month were already affected by the anti-extradition protests which had been running since June last year.
Sales of jewelry, watches, and clocks slumped by 41.6 percent in January, with medicines and cosmetics down 32.3 percent and apparel by 28.9 percent. Department-store sales were down 27 percent, books, newspapers, stationery, and gifts by 25.9 percent and optical goods by 23.9 percent, furniture, and fittings by 22 percent, footwear, and accessories by 21.6 percent and electrical goods by 20.4 percent.
Sales of Chinese drugs and herbs fell by 16.2 percent and of food, alcohol and tobacco products by 6.8 percent.
The only categories to buck the downturn were sales in supermarkets, up 10.2 percent, and of fuel, up 12.3 percent.