The total value of retail sales in Hong Kong in April decreased by 2.3% year-on-year, but fell short of expectations

The government statistics department announced that the provisional estimate of the total retail sales value for April this year was HKD 28.9 billion, a year-on-year decrease of 2.3% (the market had originally expected a year-on-year increase of 3%). The revised estimate for the total retail sales value in March this year showed a year-on-year decrease of 3.5%. Compared to the same period last year, the provisional estimate of the total retail sales value for the first four months of this year decreased by 5.6%.

In April this year, online sales accounted for 8.1% of the total retail sales value. The provisional estimate of the online sales value for that month was HKD 2.3 billion, a year-on-year decrease of 3.5%. The revised estimate for the online sales value in March this year showed a year-on-year decrease of 0.5%. Compared to the same period last year, the provisional estimate of the online sales value for the first four months of this year decreased by 2.2%.

After excluding price changes, the provisional estimate of the total retail sales volume for April this year showed a year-on-year decrease of 3.3%. The revised estimate for the total retail sales volume in March this year showed a year-on-year decrease of 4.7%. Compared to the same period last year, the provisional estimate of the total retail sales volume for the first four months of this year decreased by 7.2%.

Analyzing the provisional estimates of sales value by major retail categories from high to low, in April this year compared to April last year, the sales value of supermarket goods decreased by 2.4%. This was followed by jewelry, watches, and luxury gifts (sales value decreased by 1.7%); clothing (decreased by 5.6%); automobiles and auto parts (decreased by 53.4%); fuel (decreased by 12.5%); footwear, related products, and other clothing accessories (decreased by 5.1%); furniture and fixtures (decreased by 16.7%); and optical shops (decreased by 0.2%).

On the other hand, in April this year compared to the same month last year, the sales value of other unclassified consumer goods increased by 13.4%. This was followed by medicines and cosmetics (sales value increased by 7.2%); food, alcoholic beverages, and tobacco (increased by 3.0%); electrical appliances and other unclassified durable consumer goods (increased by 1.6%); department store goods (increased by 2.1%); books, newspapers, stationery, and gifts (increased by 11.7%); and traditional Chinese medicine (increased by 3.8%).

A government spokesperson stated that there are signs of stabilization in the retail sector in recent months. The total retail sales value in April showed a slight year-on-year decrease of 2.3%. Compared to earlier months, the decline in April further narrowed, despite the later arrival of the Easter holiday this year (which fell in mid-April, compared to March and April last year), leading to more residents traveling abroad that month.

Looking ahead, the spokesperson pointed out that the government's active promotion of tourism and major events will help stimulate consumer spending. The increase in local employment income and the steady growth of the mainland economy will also boost consumer sentiment. These factors will support the retail sector, although the ongoing changes in consumption patterns and competition among businesses will still pose challenges to the industry under the uncertainty of the macroeconomic environment