No easing of Hong Kong retail sector pain as sales in August fall 10% year on year
Retail sales have contracted by 7.7 per cent in the first eight months of 2024 compared with same period last year
Hong Kong’s retail sales declined for a sixth straight month year on year in August, falling by 10.1 per cent as changing consumer patterns, including the trend of residents heading across the border for shopping and entertainment, continued to hit business.
Provisional figures released by the Census and Statistics Department on Thursday showed sales shrank to HK$29.2 billion (US$3.7 billion) in August, further dropping from the 11.7 per cent year-on-year fall recorded in July.
It marked the sixth consecutive contraction following 15 months of continuous growth after the coronavirus pandemic.
A government spokesman attributed the drop in retail sales to the continued impact of the change in consumption patterns, the relatively strong Hong Kong dollar, and increased outbound travels by residents during the summer holidays.
“Looking ahead, the retail sector will still face challenges in the near term,” the spokesman said.
“Nonetheless, the central government’s various measures benefiting Hong Kong, as well as the government’s various initiatives to boost market sentiment and support the development of the sector, will benefit retail businesses.
