Hong Kong retail sales fell again in August – largely due to declining visitor numbers.
The Census and Statistics Department (C&SD) says the value of retail sales in August, provisionally estimated at $33.9 billion, decreased by 10.5 per cent compared with August 2015. That’s sharper than the 7.7 per cent revised decline in July, and slightly above the year-to-date figure of 10.2 per cent.
A government spokesman said the weak performance reflected the drag from the decline in visitor arrivals in August as well as the cautious consumer sentiment amid an uncertain economic outlook.
Meanwhile, the HKRMA said most member retailers are “not optimistic” about sales recovering in September and October this year, but forecasting a lower percentage drop in the single digits.
According to the C&SD, after netting out the effect of price changes year-on-year, sales in August decreased by 12.7 per cent.
As usual, jewellery, watches and clocks accounted for the majority of the decline, that category down 26.6 per cent for the month. Department store sales fell by 10.7 per cent and electrical goods and photographic equipment (which account for a lower share of total retail sales) by 27.9 per cent. Apparel sales were down 3.4 per cent.
Sales of food for consumption at home, alcohol and tobacco rose by 8.8 per cent. The HKRMA said this figure was buoyed by baked goods as people stocked up for the Mid-Autumn Festival.
The government spokesperson said the near-term outlook for retail sales will still hinge on the performance of inbound tourism “and the extent to which local consumer sentiment will be affected by various external headwinds”.