Retail Sales Value Down 10.1%

The value of total retail sales in February, provisionally estimated at $40.7 billion, decreased 10.1% on the same month a year ago, the Census & Statistics Department announced today.

After netting out the effect of price changes over the same period, the volume of total retail sales fell 10.4% year-on-year.

Noting the difference in timing of the Lunar New Year holiday between last year and this year, the department said analysing figures for the first two months combined better reflects the underlying trend.

The sales value of jewellery, watches and clocks, and valuable gifts decreased by 2.8%.

This was followed by sales of wearing apparel (-3.7%); food, alcoholic drinks and tobacco (-1%); electrical goods and other consumer durable goods, not elsewhere classified (-18.3%); fuels (-1.4%); Chinese drugs and herbs (-1.7%); and optical shops (-2%).

The sales value of medicines and cosmetics increased 2.3% in the first two months compared to the same period a year ago.

This was followed by sales of commodities in department stores (+4.2%); commodities in supermarkets (+1.5%); other consumer goods, not elsewhere classified (+4.6%); motor vehicles and parts (+3.7%); footwear, allied products and other clothing accessories (+1.3%); furniture and fixtures (+3.4%); and books, newspapers, stationery and gifts (+1.7%).

The weak performance of retail sales in recent months reflected consumption sentiment remained cautious amid various external uncertainties.

While the near-term outlook for retail sales will be affected by moderating global economic growth and external uncertainties, the full employment situation and sustained growth in inbound tourism should provide support.