Hong Kong’s retail sales fell in July as many consumers traveled abroad for summer vacations. According to the Census and Statistics Department, sales of jewelry, watches, clocks, and valuable gifts dropped by 25% year-on-year to HKD 3.75 billion ($480.7 million). Overall retail sales also decreased by 12% to HKD 29.13 billion ($3.74 billion). This followed June’s year-on-year drops of 23% in hard luxury items and 10% in total retail sales.
A government spokesperson noted that the decline was due to shifting consumption patterns and the strong Hong Kong dollar. Increased outbound travel during the summer holidays also contributed to the downturn.
The comparison with last year is weaker because the border reopening between China and Hong Kong boosted tourism then. Hong Kong relies heavily on luxury sales from mainland visitors.
For the first half of the year, hard-luxury sales fell by 15% to HKD 30.25 billion ($3.88 billion). Overall retail sales decreased by 7% to HKD 220.59 billion ($28.29 billion).
The spokesperson acknowledged ongoing challenges for the retail sector but expressed optimism. Government measures and economic growth, along with rising employment earnings, are expected to support and stimulate retail businesses.
