Over 90 percent of members of the Hong Kong Retail Management Association (HKRMA) expect retail sales this Lunar New Year to increase or remain flat compared to last year, a survey from the association found, reflecting members' perception of an overall improved market outlook.
Most categories are projected to see single-digit growth, while electrical appliances, food stores, and eyewear are expected to remain flat. Jewelry is expected to see a low double-digit increase.
Annie Tse Yau On-yee, the chairwoman of the HKRMA, predicts that the retail market will remain flat in the first half of this year, while categories driven by tourist numbers will perform better, including cosmetics, pharmaceuticals, personal care, and health products.
Tse believes that performance in the jewelry sector will depend on gold price trends.
Hong Kong residents traveling abroad, spending in mainland China, and online shopping in mainland China continue to pose challenges to local consumption, Tse added.
With the Budget soon to be announced, Tse believes the government, given its current financial situation, may be reluctant to adopt suggestions to introduce consumption vouchers.
However, she expressed hopes for the government to encourage Hong Kong residents to spend locally through a shopping points system and proactively attract more high-spending overnight tourists, such as by increasing the duty-free allowance for goods entering the Mainland.
