The Census and Statistics Department has released the latest figures for Hong Kong's retail sales, revealing a provisional estimate of HK$376.8 billion for total retail sales in 2024, a decline of 7.3% compared to the previous year.

The Chairperson of the Hong Kong Retail Management Association, Annie Yau Tse, commented today (Feb. 4) that the decrease in retail sales value was anticipated, given the challenging market conditions.

Since March and April of last year, the local market has remained stagnant, primarily due to the strong Hong Kong dollar, which has encouraged residents to spend on overseas trips and significantly altered tourist spending patterns.

Regarding the provisional estimate of HK$32.8 billion for December 2023, which represents a nearly 10% year-on-year decline, Annie Yau Tse noted that the holiday season coincided with a long holiday period, further promoting outbound travel. She mentioned that following the resumption of the "multiple-entry visa" for Shenzhen, there has been an increase in foot traffic to Hong Kong, but it will take time to see the benefits of these measures.

Annie Yau Tse highlighted that with the return of the Shenzhen "multiple-entry visa," low-priced goods in Hong Kong have seen improved sales. Survey results indicate that the cosmetics and personal care sectors have benefited from this trend. If retailers offer promotional discounts, they could maintain sales levels or even achieve single-digit growth. She hopes that Hong Kong can attract more visitors from the Greater Bay Area and Southeast Asia.

Looking ahead, Valentine's Day is approaching next Friday (Feb. 14). She noted that this year's Valentine's Day falls on a weekday, which is likely to lead to many residents sending flowers to their offices, providing a boost to the industry. However, she anticipates that the impact will not match previous years, attributing this to the complex and changing environment and shifts in consumer habits post-pandemic. Nonetheless, she believes that any festive uplift would be beneficial in the current economic downturn.

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