April retail sales drop 14.7%

The value of total retail sales in April, provisionally estimated at $29.6 billion, was down 14.7% compared with the same month in 2023, the Census & Statistics Department announced today.

After netting out the effect of price changes over the same period, the provisional estimate of the volume of total retail sales for the month was 16.5% lower year-on-year.

Of the total retail sales value in April, online sales accounted for 8.2%. Provisionally estimated at $2.4 billion, the value of online retail sales increased 11.4% compared with a year earlier.

The value of sales of commodities in supermarkets decreased by 3%. This was followed by sales of other consumer goods not elsewhere classified (-13.2%); jewellery, watches and clocks, and valuable gifts (-28.7%); wearing apparel (-23.6%); medicines and cosmetics (-7.1%); food, alcoholic drinks and tobacco (-12.2%); electrical goods and other consumer durable goods not elsewhere classified (-26.5%); commodities in department stores (-21.5%); fuels (-9.6%); furniture and fixtures (-23%); footwear, allied products and other clothing accessories (-26.3%); books, newspapers, stationery and gifts (-4.5%); Chinese drugs and herbs (-25.1%); and optical shops (-23.1%).

By contrast, the value of sales of motor vehicles and parts increased 58.5% in April year-on-year.

The Government said the value of total retail sales declined notably in April from a year earlier, partly because the Easter holidays rendered the effects of the changing consumption pattern of residents more visible.

It noted that a large number of residents made outbound trips during the Easter holidays and explained that this not only affected their local consumption during their time away but also could have reduced consumption in the days before and after the trips.

Apart from that, the unstable weather conditions in April this year with higher-than-usual rainfall, also had some impact.

Furthermore, the relatively high base of comparison, attributable to buoyant consumer sentiment supported by the return to normalcy after the COVID-19 pandemic and the Consumption Voucher Scheme, was also relevant.

In response media enquiries on the release of the value of total retail sales for April, the Government pointed out that in the initial period of normal travel resumption, inbound visitors’ length of stay was longer and their per capita spending was higher, too.

As a result, excluding the months of Lunar New Year and Christmas, the value of total retail sales in April 2023 was the highest since June 2019.

Looking ahead, the Government said visitors and residents’ changing consumption patterns would continue to present challenges to the retail sector.

Nevertheless, the increase of visitor arrivals, rising employment earnings and the recent stabilisation of asset markets will provide support to the sector and Hong Kong’s economy.

The strenuous efforts to promote a mega event economy and boost market sentiment will also help, the Government added.