March retail sales drop 7%

The value of total retail sales in March, provisionally estimated at $31.2 billion, was down 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 8.6% lower year-on-year.

Of the total retail sales value in March, online sales accounted for 7.8%. Provisionally estimated at $2.4 billion, the value of online retail sales decreased 4.7% compared with a year earlier.

The value of sales of jewellery, watches and clocks, and of valuable gifts, decreased 17.7% in March compared with a year earlier.

There were also declines in the value of sales of commodities in supermarkets (-3.4%); wearing apparel (-17.5%); food, alcoholic drinks and tobacco (-11.3%); commodities in department stores (-14.1%); electrical goods and other consumer durable goods not elsewhere classified (-15.5%); fuels (-14.5%); furniture and fixtures (-3.3%); footwear, allied products and other clothing accessories (-10.7%); Chinese drugs and herbs (-5.8%); and optical items (-10.1%).

By contrast, the value of sales of other consumer goods not elsewhere classified increased 8.7% for the period. Also up were sales of medicines and cosmetics (+8.9% in value); motor vehicles and parts (+7.6%); and books, newspapers, stationery and gifts (+6.8%).

The Government said the value of total retail sales fell in March partly due to a high base of comparison for visitor spending and the Easter holidays.

For the first quarter as a whole, the value of total retail sales saw a mild decrease of 1.3% from a year earlier. On a seasonally adjusted quarter-to-quarter basis, the value of total retail sales increased 0.3%.

Looking ahead, the Government said that a further revival of inbound tourism and rising household income should remain supportive to the retail sector, adding that its efforts to promote a mega event economy and boost sentiment will be an additional help.

However, it said the changing consumption patterns of visitors and residents may continue to pose challenges.