Hong Kong’s October retail sales figures underline need for change

The latest monthly retail sales figures were up 6.9 per cent on a year ago but sent mixed messages to business and service providers. Provisional figures for the value of October’s sales were boosted by the 1.4 million mainland Chinese passenger trips to the city during the eight-day autumn break, coinciding with the “golden week” holiday. This was a 15 per cent increase on the number of visitors during the seven-day break a year earlier. But the value of retail spending did not keep pace, apparently reflecting changed shopping habits.\nIn other figures, the revised estimate for September showed retail sales rose by 6 per cent year on year. For the first 10 months of 2025, the value of total retail sales was comparable with a year earlier.\nA government spokesperson said the retail recovery gathered strength in October, with sales of most broad retail outlet types continuing to grow. Improved local consumer sentiment and sustained growth in visitor arrivals should continue to support growth in retail businesses.\nAfter netting out the effect of price changes, the provisional estimate of the volume of total retail sales in October increased by 5.3 per cent compared with a year earlier.\nOf the total retail sales value in October, online transactions accounted for 14.6 per cent. The value of online retail sales in that month, about HK$5.2 billion, increased by 27.2 per cent year on year.\nRetailers should heed the message implicit in the failure of increased spending in October to keep pace with the higher number of visitors, which implies that per-head spending fell. This underscores the change in spending behaviour among mainland visitors. The once familiar sight of big spenders with shopping bags from luxury stores has given way to a newer generation of tourists, on smaller budgets, who seem more interested in Instagrammable moments and experiences, and are happy eating in a dai pai dong and shopping in local stores like Hong Kong residents.\nThat puts pressure on retailers and service providers to adjust to the new generation of visitors and their spending habits. Changing travel and consumption behaviour makes adaptation and innovation a must rather than an option.\n