HK June retail sales fall 9.7 percent y/y in 'challenged' sector

Hong Kong's June retail sales fell 9.7 percent from a year earlier, government data showed on Thursday, reflecting the changing consumption patterns of visitors and residents and the strong Hong Kong dollar.

Sales decreased to HK$29.9 billion, the fourth consecutive monthly decline, following an 11.5 percent slump in May, 14.7 percent drop in April and a 7 percent fall in March.

A government spokesman said that while the value of total retail sales fell, the rate of decline had narrowed.

"The retail sector will still face challenges in the near term," the spokesman said.

Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association, said the retail market was "facing a difficult moment now and the industry will remain weak, and (this will) last until the end of this year".

In volume terms, retail sales in June fell 11.2 percent year-on-year versus a 12.9$ decline in May, 16.5 percent drop in April and an 8.7 percent fall in March.

For the first half of 2024, retail sales value fell 6.6 percent year-on-year and volume was down 8.2 percent from a year earlier period.

June visitor arrivals stood at 3.132 million, up 14 percent from a year-ago period, data from the Hong Kong Tourism Board showed. That compared with 3.398 million visitors in May.

The number of mainland Chinese visitors stood at 2.341 million in June, up 8.6 percent year-on-year.

Sales of jewellery, watches, clocks and valuable gifts in June dropped 23.1 percent year-on-year after a 21.4 percent drop in May.

Sales of clothing, footwear and accessories dropped 9.1 percent in June following a 17.9 percent slump in May.

(Reuters)