Hong Kong Retail Management Association: Expects Hong Kong's full-year retail sales to record single-digit growth

Hong Kong Retail Management Association Chairman Annie Tse Yau On-yee said that retail performance during the October National Day Golden Week was positive, with retail sales rising significantly during the seven-day mainland holiday, with some categories recording increases ranging from single digits to 50%, with cosmetics and jewellery/gold being the biggest beneficiaries. Overall, October benefited from the improving retail market during the Golden Week, driven by tourist spending, and Hong Kong residents also stayed in Hong Kong to spend, but after the Golden Week the retail sales growth has narrowed. She believes that mega events held in Hong Kong, including cross-border Halloween and the Wine and Dine Festival, increased foot traffic in the city. The association interviewed 3,100 shops and approximately 76,000 employees regarding October sales. Specifically, the survey showed that some members recorded significant sales increases during the Golden Week, ranging from single digits to over 50%, with cosmetics shops performing notably well, mainly driven by spending from visiting mainland tourists; jewellery and food categories recorded low double-digit growth, and Tse Yau On-yee stressed that the contribution of the local market should not be overlooked; convenience stores, clothing, household goods, and personal care recorded single-digit increases. As for department stores and watches, they were broadly flat, while some mass-market supermarkets, electrical appliance and dried seafood shops recorded single-digit declines. She said that business growth during the seven-day Golden Week holiday was more significant, but after averaging out, the full-month increase had narrowed noticeably. In addition, the survey also showed that Hong Kong's retail market was stable in November, with about 60% of members expecting sales to increase and only about 10% expecting sales to decline. She pointed out that the current retail market is difficult to compare with the pre-pandemic period because tourists' travel patterns are different, and she expects the retail market to gradually improve. Regarding Hong Kong's retail outlook, she believes that recent stock market volatility, US interest rate hikes, and the external economic environment, including the US midterm elections and the war in the Middle East, have affected Hong Kong's economy and consumer sentiment. The association expects full-year retail sales to record single-digit growth, and industry participants should seize opportunities with the goal of maintaining positive growth.