Hong Kong experienced a continued downturn in retail sales for the ninth consecutive month as of November, according to preliminary data released by the Census and Statistics Department on Thursday. In November, the value of retail sales saw a year-over-year decline of 7.3 percent, escalating from the 2.8 percent decrease registered in October. This signifies a persistent slump in sales that began in March.
Online sales, comprising 9.3 percent of the total sales value for November, also witnessed a contraction of 7.0 percent compared to the previous year, which is a slight improvement from the 8.4 percent decline recorded in October. Correspondingly, the annual decrease in retail sales volume intensified, reaching 8.3 percent in November, up from the 4.8 percent decline noted in the prior month.
Breaking down the categories, there was a significant drop of 21.4 percent in sales of consumer durable goods. Similarly, the sales of clothing, footwear, and related products decreased by 6.7 percent. Department store sales were particularly hard-hit, plummeting 12.3 percent compared to last year, whereas supermarket sales displayed a modest increase of 3.5 percent.
A government spokesperson commented on the outlook, stating, "The ongoing changes in the consumption patterns of both visitors and residents will continue to impact retail sector performance." However, there is a silver lining as various measures introduced by the Central Government to revitalize the Mainland economy, alongside initiatives by the SAR Government to enhance market sentiment and improve employment earnings, are expected to encourage spending among both visitors and local residents. Notably, the resumption and expansion of the multiple-entry Individual Visit Scheme for Shenzhen, effective since December, is anticipated to play a supportive role in bolstering the local market.
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