Hong Kong Retail Sales Suffer Downturn in November

Sales of hard luxury slipped in November, witnessing their first decline since March amid an uncertain consumer market.

Revenue from jewelry, watches, clocks and valuable gifts decreased 8% year on year to HKD 2.91 billion ($372.2 million) for the month, the municipality’s Census and Statistics Department reported Wednesday. The drop followed eight consecutive months of increases, including a 14% jump in October, when the Hong Kong government released new retail vouchers.

Sales in all retail categories slipped 4.2% to HKD 29.46 billion ($3.77 billion). Despite the downturn in November, the previous month’s rise helped keep the two-month total nearly even.

“Retail businesses softened in November following the improvement in the preceding month,” a government spokesperson said. “For October and November combined, retail sales value held largely stable compared to a year earlier.”

In the first 11 months of the year, sales of jewelry watches, clocks and valuable gifts grew 0.7% to HKD 35.18 billion ($4.5 billion). Proceeds from all retail segments slipped 1.1% to HKD 316.25 billion ($40.45 billion).

“Looking ahead, while tightened financial conditions will continue to weigh on local consumption demand, the further relaxation of social-distancing measures and continued improvement in labor-market conditions will provide support,” the spokesperson added. “In addition, the expected increase in visitor arrivals should benefit retail sales performance.”

Image: Mong Kok shopping district in Hong Kong. (Shutterstock)