Hong Kong's retail sales could end up facing a low double-digit decline for the whole year, the Hong Kong Retail Management Association warns.
HKRMA chairwoman Annie Tse Yau On-yee said on television yesterday that the retail sector is facing a situation "worse than winter" and it is "a bit unrealistic" for the sector to expect a full recovery to pre-pandemic levels as many residents have turned to online shopping after the three-year pandemic.
Her comments came after the city's retail sales contracted for a second month in April from with a high base a year ago, amid increasing northbound travel among Hongkongers and changes in the consumption habits of tourists to the city.
Retail sales have fallen 4.7 percent in the first four months of the year, according to data from the Census and Statistics Department.
When asked about a series of mega events planned by the government to boost tourism, Tse said it would take time for these measures to bear fruit.
She called on the central government to boost the duty-free allowance for imported items for personal use by mainland visitors to 100,000 yuan (HK$107,646) from the current 5,000 yuan per trip.
Financial Secretary Paul Chan Mo-po earlier disclosed that authorities are discussing the higher cap with Beijing.
Tse also urged local businesses to make good use of the footfall brought on by events and explore potential business avenues. She said the retail sector will work with other industries including food and beverage, tourism and hotels to host some events.
In terms of competition with mainland cities, Tse doesn't think Hong Kong's businesses can win a price war as costs in the mainland are far lower than in the city. She also reiterated that Hong Kong should focus on high-quality products.
But she agreed businesses should improve their customer service, especially in non-core tourist areas, as the city has long been criticized for its lack of hospitality.
In other news, the number of shop rentals increased by 10 percent month-on-month to 356, according to Centaline Commercial, boosted by the strong demand for food and beverage businesses.
Moutai’s stock is down nearly 8 percent this year. SING TAO
The retail sector is facing a situation that’s worse than winter, says Annie Tse. SING TAO
