Hong Kong’s retail sales fell in February amid a slowdown in demand for luxury goods in the municipality, although the decline was more moderate than the previous month.
Revenue from jewelry, watches, clocks and valuable gifts slid 14% year on year to HKD 4.17 billion ($535.9 million) for the month, the municipality’s Census and Statistics Department reported Monday. In January, hard luxury saw an 18% decrease. Sales across all retail categories were down 13% to HKD 29.39 billion ($3.78 billion) in February.
The decline is partly the result of a change in the timing of the Lunar New Year. The holiday took place on January 29 this year, compared to February 10 in 2024, so spending for the festivities took place earlier in the year rather than at the start of the second month.
The municipality derives much of its luxury revenue from tourists — in large part from China — who come to purchase goods. However, over the last few months, those on the mainland have been turning away from luxury purchases. Additionally, many Hong Kong residents have been spending money while traveling abroad rather than domestically.
Hard-luxury sales slipped 16% year on year to HKD 8.63 billion ($1.11 billion) for the first two months of 2024. Sales in all retail categories dropped 8% to HKD 64.77 billion ($8.33 billion).
“The year-on-year decline in the value of total retail sales in February 2025 widened, partly due to the earlier arrival of Chinese New Year in late January this year as compared to mid-February last year,” a government spokesperson said. “Looking ahead…the various measures by the central government to boost the mainland economy…would benefit the retail sector, though it would continue to face challenge from the change in consumption patterns of visitors and residents.”
Image: Mongkok shopping district in Hong Kong. (Shutterstock)
