Retailers in Hong Kong, including jewelers, suffered a double-digit sales slump in May as consumer trends changed and the Hong Kong dollar soared.
According to Hong Kong government statistics, sales of jewelry, watches, and other valuable gifts dropped by 21.4%, totaling HKD 4 billion (USD 511.61 million). For the January-May period, sales reached HKD 22.23 billion (USD 2.84 billion), down 10.6% compared to the previous year.
Overall retail sales, including luxury goods, fell by 11.5% to HKD 30.5 billion (USD 3.91 billion).
The Hong Kong government attributed the decline to changing consumption patterns among visitors and residents, as well as a stronger Hong Kong dollar and a high comparative base from last year.
Despite this decline, there is a silver lining—online retail sales grew by over 20% year-on-year in May, and the share of online sales in total retail sales has been steadily rising in recent months. This trend presents new opportunities for retailers to adapt to consumers' evolving shopping habits and tap into new business models.
The government has noted that "the retail sector may still face challenges in the short term." However, recently announced measures, such as further enhancing individual visit schemes and increasing duty-free allowances for mainland travelers, are expected to boost the retail business in Hong Kong.