Hong Kong's retail sales down 32.8% to $26.8b in May

It narrowed from April following a stabilised local epidemic situation.

Hong Kong’s retail sales fell 32.8% MoM to $26.8b in May, according to data from the Census and Statistics Department (C&SD). On a YoY basis, after netting out the effect of price changes, retail sales volume slipped 33.9%.

A government spokesperson attributed this to a standstill in inbound tourism and weak job and income conditions. However, retail sales narrowed further from that in April thanks to the stabilised local epidemic situation and consequential easing of social distancing measures.

Though recording the highest value of sales, commodities in department stores saw a 37.8% crash YoY. Jewellery, watches and clocks, and valuable gifts recorded the sharpest decline in sales at 69.7%, followed by medicines and cosmetics (62%) and footwear, allied products and other clothing accessories (39.7%).

Also posting declines were food, alcoholic drinks and tobacco; wearing apparel; electrical goods and other consumer durable goods; motor vehicles and parts; fuels; books, newspapers, stationery and gifts; Chinese drugs and herbs; optical shops and other consumer goods.

Meanwhile, the value of sales of commodities in supermarkets grew 7.3% YoY during the month. This was followed by sales of furniture and fixtures, which climbed 6.5%

The spokesperson further pointed out that the business environment for retail trade remains difficult amidst austere labour market conditions and the travel restrictions in place.