The 15-month stretch of growth in Hong Kong retail sales has ended, with a 7 per cent year-on-year decline in March. 

However, a government spokesman cautioned that a significant part of the fall was down to a high base of comparison for visitor spending and the Easter holidays.

“For the first quarter as a whole, total retail sales value saw a mild decrease of 1.3 per cent from a year earlier. On a seasonally adjusted quarter-to-quarter basis, the value of total retail sales increased by 0.3 per cent,” the spokesman said.

March’s decline followed an increase of 1.9 per cent in February. 

The Census and Statistics Department (C&SD) data showed online sales accounted for 7.8 per cent of overall sales, and were down by 4.7 per cent year on year. However, the revised estimate of the value of online retail sales in January and February this year decreased by 13.4 per cent year on year.

The volume of overall retail sales in Hong Kong in March – calculated after netting out the effect of price changes – decreased by 8.6 per cent, the C&SD reported. Over the first quarter, retail sales volume decreased by 3.1 per cent in volume compared with last year.

Categories showing the greatest declines in value were jewellery and watches, down by 17.7 per cent, apparel down by 17.5 per cent, food, alcohol and tobacco by 11.3 per cent, supermarket sales by 14.1 per cent and electrical goods by 15.5 per cent. 

Categories showing growth included miscellaneous consumer goods up by 8.7 per cent, medicines and cosmetics up by 8.9 per cent, and books, newspapers, stationery and gifts by 6.8 per cent.

The government spokesman said the further revival of inbound tourism and rising household income should support the retail sector as the year continues. 

“The government’s efforts to promote a mega event economy and boost sentiment should also help. Yet, the changing consumption patterns of visitors and residents may continue to pose challenges.”