Hong Kong Luxury Sales Improve Slightly Even as Downturn Persists 

Mongkok shopping district in Hong Kong image

Hong Kong retail sales fell in November as consumers spent less on luxury items, but the decrease eased from October. 

Revenue from jewelry, watches, clock and valuable gifts dropped 5% year on year to HKD 4.43 billion ($569.3 million) for the month, according to data the government’s Census and Statistics Department released Thursday. The decline was softer than the previous month, which saw hard-luxury revenue fall 12%. Retail sales across all product categories slipped 7% to HKD 31.7 billion ($4.08 billion). 

The decrease also reflected an unfavorable comparison with the same period a year ago, when spending bounced back after the border reopened and tourists were allowed to return to Hong Kong from the mainland to purchase luxury goods. The municipality derives a large portion of its luxury revenue from tourists — primarily from China — who travel there to purchase goods. An increase in the strength of the local currency also impacted sales, the government noted. 

“The value of total retail sales continued to decline in November from a year earlier, alongside the change in consumption patterns and the relatively strong Hong Kong dollar,” a government spokesperson said. “The change in consumption patterns of visitors and residents will continue to weigh on the performance of the retail sector.” 

For the first 11 months of the year, proceeds from jewelry, watches, clocks and valuable gifts fell 15% to HKD 46.65 billion ($6 billion). Total retail sales for the period were down 7% to HKD 344.01 billion ($44.24 billion). 

“The introduction of various measures by the central government to boost the mainland economy and benefit Hong Kong…together with various initiatives to boost market sentiment, as well as increasing employment earnings, would be conducive to spending by both visitors and residents in local markets,” the spokesperson added. 

Image: Mongkok shopping district in Hong Kong. (Shutterstock)

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Hong Kong Luxury Sales Improve Slightly Even as Downturn Persists 

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