Hong Kong retail sales dropped in December as residents traveled during the holiday period, spending abroad rather than domestically.
Revenue from jewelry, watches, clocks and valuable gifts decreased 14% year on year to HKD 4.69 billion ($601.82 million) for the month, the municipality’s Census and Statistics Department reported Monday. Sales across all retail categories fell 10% to HKD 32.79 billion ($4.21 billion).
The decline came as Hong Kong residents traveled during the festive season, spending their money on luxury products abroad instead of within the municipality. However, sales across all retail categories for the fourth quarter improved compared to the figure recorded in the prior three-month period. Revenue for the October-to-December period was down 7%, a softer decrease than during the third quarter, which saw a 10% dip, the department said.
Hard-luxury sales slipped 15% for the full year to HKD 51.39 ($6.59 billion) in 2024, while sales in all retail categories slid 7% to HKD 376.78 billion ($48.38 billion)
“The value of total retail sales declined further in December from a year earlier, partly reflecting the impact of residents’ increased outbound trips during the holidays,” a government spokesperson said. “Looking ahead, the near-term performance of the retail sector will continue to be affected by the change in consumption patterns of visitors and residents.”
Despite the drops, measures introduced to boost the mainland economy and benefit Hong Kong as well as increased employment earnings will benefit the retail sector, the spokesperson added.
Image: People shopping in Hong Kong. (Shutterstock)
