Hong Kong retail sales rise 4.5% in July

Jewellery, watches and clocks led gains.

Hong Kong’s retail sales expanded for a 15th consecutive month, rising 4.5% year on year (YoY) to $3.96b (HK$31b) in July, according to the Census & Statistics Department.

The volume of total retail sales increased 2.3% after adjusting for price changes.

Sales of jewellery, watches and clocks, and valuable gifts rose 19.7% YoY, the strongest growth amongst major categories, whilst sales of electrical goods and other consumer durable goods not elsewhere classified increased 11.5%.

Consumer goods not elsewhere classified rose 10.5%, whilst sales of medicines and cosmetics grew 7.3%.

Other segments grew, including optical shops (+1.8%), food, alcoholic drinks, and tobacco (+1.7%), commodities in department stores (+0.5%), and commodities in supermarkets (+0.3%).

Online retail sales increased 9.5% to $357.1m (HK$2.8b), accounting for 9.1% of total retail sales.

Several categories recorded declines. Motor vehicle and parts sales fell 18.2%, whilst fuel sales dropped 18%. Sales of Chinese drugs and herbs declined 13.7%, followed by books, newspapers, stationery, and gifts at 2.8%.

Wearing apparel sales fell 1.8%, whilst furniture and fixtures declined 2.4%. Footwear, allied products, and other clothing accessories sales decreased 0.3%.

The Census & Statistics Department said retail sales growth remained resilient in July, marking the 15th consecutive month of expansion.

“Consumer spending continued to shift toward digital channels with stronger online retail sales growth,” the department said.

It said continued economic expansion, rising household incomes, and stable labour market conditions were expected to support consumer sentiment, whilst upcoming mega-events were expected to sustain visitor arrivals and support retail businesses.

(US$1 = HK$7.84)