Hong Kong retail sales dropped in September as consumers spent less on luxury items and outbound tourism increased.
Revenue from jewelry, watches, clocks and valuable gifts slid 18% year on year to HKD 3.55 billion ($456.4 million) for the month, according to data the government’s Census and Statistics Department released last week. However, the decrease slowed from the previous month, when hard-luxury revenue fell 24%. Retail sales across all product categories slipped 7% to HKD 29.57 billion ($3.8 billion).
The decline also reflected an unfavorable comparison with the same period a year ago, when spending bounced back after the border reopened and tourists were allowed to return to Hong Kong from the mainland to purchase luxury goods. The municipality derives a large portion of its luxury revenue from tourists — primarily from China — who come there to purchase goods.
“The value of total retail sales continued to decline in September from a year earlier, but the rate of decline narrowed,” a government spokesperson said. “The near-term performance of the retail sector [will] continue to be affected by the change in consumption patterns of residents and visitors.”
For the first nine months, proceeds from jewelry, watches, clocks and valuable gifts fell 16% to HKD 37.71 billion ($4.85 billion). Total retail sales for the period were down 8% to HKD 279.41 billion ($35.93 billion).
“An improved outlook for the mainland economy following the recent introduction of a wide range of stimulus measures, and a possible easing of the Hong Kong dollar alongside the US dollar…would be conducive to boosting sentiment and supporting spending,” the spokesperson added.” In addition, the [government’s] various measures benefiting Hong Kong and initiatives to boost market sentiment and increasing employment earnings would also benefit the sector.”
Image: Mong Kok shopping district in Hong Kong. (Shutterstock)
Stay up to date by signing up for our diamond and jewelry industry news and analysis.
