Retail sales in Hong Kong showed a modest improvement in November, with a slower decline in luxury item purchases compared to October. According to data released by the government’s Census and Statistics Department, revenue from jewelry, watches, clocks, and valuable gifts fell by 5% year-on-year to HKD 4.43 billion ($569.3 million) for the month. This decline was less severe than October’s 12% drop in hard-luxury revenue.
Overall retail sales across all product categories slipped by 7%, totaling HKD 31.7 billion ($4.08 billion). This decrease was partly due to an unfavorable comparison with the same period last year, when spending surged after the border reopened, allowing mainland Chinese tourists to return to Hong Kong to buy luxury goods. Hong Kong heavily depends on luxury purchases from tourists, particularly from China.
Additionally, a stronger local currency impacted sales, as noted by a government spokesperson. “The value of total retail sales continued to decline in November compared to a year earlier, influenced by changes in consumption patterns and the relatively strong Hong Kong dollar,” the spokesperson said.
For the first 11 months of the year, proceeds from jewelry, watches, clocks, and valuable gifts dropped by 15% to HKD 46.65 billion ($6 billion), while total retail sales for the period fell by 7% to HKD 344.01 billion ($44.24 billion).
Looking ahead, the government remains optimistic that measures by the central government to boost the mainland economy, along with initiatives to improve market sentiment and increase employment, will encourage spending by both visitors and residents in the local market.