Hong Kong’s retail sales fell in March amid a slowdown in demand for luxury goods in the municipality, although the decline was more moderate than the previous month.
Revenue from jewelry, watches, clocks and valuable gifts slipped 3.9% year on year to HKD 4.06 billion ($524.2 million) for the month, the municipality’s Census and Statistics Department reported last week. In February, hard luxury saw a 13% decrease. Sales across all retail categories were down 3.5% to HKD 30.07 billion ($3.88 billion).
The municipality derives much of its luxury revenue from tourists — in large part from China — who come to purchase goods. However, over the past few months, those on the mainland have been turning away from luxury purchases. Additionally, many Hong Kong residents have been spending money while traveling abroad rather than domestically.
Hard-luxury sales slid 12% year on year to HKD 12.69 billion ($1.64 billion) for the first three months of 2025. Sales in all retail categories dropped 7% to HKD 94.84 billion ($12.24 billion).
“Looking ahead, the sustained steady growth of the mainland economy, the government’s proactive efforts to boost the consumption market through promotion of tourism and mega events, as well as the increase in employment earnings will continue to support the retail sector,” a government spokesperson said. “However, the increased level of uncertainty in the global economic outlook and the impact of the change in consumption patterns will pose challenges to the sector.”
Image: Tsim Sha Tsui shopping district in Hong Kong. (Shutterstock)
