Retail Sales Dropped 4.2 Percent In November

Local retail sales decreased by 4.2 percent year-on-year in November, snapping two months of growth.

Government figures released on Wednesday showed that the value of total retail sales dropped to HK$29.5 billion, after September saw year-on-year growth of 0.2 percent and October a 4 percent rise.

For the first 11 months of 2022, there was a 1.1 percent drop in retail sales compared to the same period in 2021.

Sales of commodities in department stores were down 19.3 percent year-on-year in November, there was a 16.4 percent fall in sales of wearing apparel, and a 8.3 percent decrease in sales of jewellery, watches and clocks, and valuable gifts.

But sales of motor vehicles and parts grew by 24.8 percent.

"Retail businesses softened in November following the improvement in the preceding month. For October and November combined, retail sales value held largely stable compared to a year earlier," a government spokesman said.

"Looking ahead, while tightened financial conditions will continue to weigh on local consumption demand, the further relaxation of social distancing measures and continued improvement in labour market conditions will provide support. In addition, the expected increase in visitor arrivals should benefit retail sales performance."

But Retail Management Association chairwoman Annie Yau Tse said sales won't be positive in the first half of 2023, even with the reopening of the border with the mainland.

"Retail sales on the mainland are still weak. Even after the border reopens, we don't expect mainland visitors to come to Hong Kong and do a lot of shopping immediately like what they did before Covid," she said.

"The situation in the first half of 2023 may remain poor. Some of our members even expect the situation will be worse than that of 2022... There are a lot of unforeseen circumstances."