Hong Kong retail sales drop 13% in February

This was attributed mainly due to the timing of the Lunar New Year.

Retail sales in Hong Kong were provisionally estimated at $29.4b in February, down 13% from the same month last year, according to the Census & Statistics Department.

After adjusting for price changes, the real decline was 15%. Online sales accounted for 7.8% of total retail transactions at $2.3b, dropping 7.3% year-on-year.

Officials noted that retail sales fluctuate in the first two months of the year due to the timing of the Lunar New Year.

Since the festival fell on 29 January this year instead of 10 February last year, a combined January-February analysis gives a clearer picture. Over this period, total retail sales fell 7.8%, whilst online sales declined 2.4%.

Sales dropped across multiple categories. Jewellery, watches, clocks, and valuable gifts fell 15.8%, whilst supermarkets dropped 4.4%. Wearing apparel declined 5.4%, electrical goods and durables fell 5.3%, and department stores saw a 9.9% decrease. Fuel sales dropped 8.5%, motor vehicles and parts plunged 49.9%, and footwear and accessories fell 12.3%. Books, newspapers, stationery, and gifts declined 10.9%, furniture and fixtures dropped 25.6%, Chinese drugs and herbs fell 9.1%, and optical shops recorded a 7.6% decline.

Some categories saw slight gains. Sales of food, alcoholic drinks, and tobacco increased 0.7%, while medicines and cosmetics rose 0.6%.

The government attributed February’s sharper decline to the earlier Lunar New Year but noted that the combined January-February drop was less severe than in December 2024.

Officials expect economic stimulus measures from the central government and local efforts to boost tourism and major events to help the retail sector. However, shifting consumer habits among residents and visitors remain a challenge.