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)