Have Hong Kong’s retailers turned the corner after August’s sales surge?
Sales in August rose 3.8 per cent but involution wave from China threatens retailers of popular consumer goods
Hong Kong’s unexpectedly robust retail sales in August were bolstered by a surge in tourism and a strong local stock market but recovery remains uneven, with businesses of popular consumer goods preparing for potential price wars driven by the lower cost of living across the border.
Government figures released on Thursday showed retail sales grew by 3.8 per cent year on year, marking a fourth straight month of growth.
It followed 14 consecutive months of decline from March 2024 to April 2025 and was the highest since December 2023 when sales soared by 7.8 per cent.
“Tourism helped [but] the rising stock market also created a wealth effect,” Terence Chong Tai-leung, executive director of the Lau Chor Tak Institute of Global Economics and Finance at the Chinese University of Hong Kong, told the Post.
Hong Kong Retail Management Association chairwoman Annie Tse Yau On-yee said that while sales had stabilised they had not yet reached the recovery stage.
She said retailers were beginning to express confidence in the outlook.