Hong Kong's retail sales will increase by 13 percent year-on-year to HK$395 billion in 2023, but it may take five to 10 years before the figure returns to the level of 2018, according to a PwC forecast.
Department stores and the luxury sector, including jewelry, are expected to grow by 40 percent, while clothing and footwear will see a 20 percent rise, supported by a tourism recovery and strengthening yuan.
Hong Kong's retail sales fell by nearly 1 percent to HK$350 billion in 2022 due to factors such as the Covid-19 pandemic and restrictions on gatherings and dining.
PwC's Asia Pacific, Mainland China and Hong Kong consumer markets leader Michael Cheng Woon-yin said the tourism industry will gradually recover with 20 million visitors expected to visit Hong Kong in 2023, a third of its 65 million peak in 2018.
Although reopening the border helps, a full recovery to pre-pandemic levels may be challenging. Cheng expects it would take five to 10 years to recover the level of HK$480 billion seen in 2018.
PwC projects retailers will combine consumers' personal data with artificial intelligence algorithms to their advantage.
The growth of future e-commerce will also depend on various factors, including consumer data protection and ethical AI.
