Retail sales in Hong Kong slumped in November – but given the recent announcement of the opening of borders with the mainland this month, the statistics will be of little importance to traders. 

Sales were down 4.2 per cent compared with the same month in 2021, at HKD$29.5 billion (US$3.77 billion), following a 4 per cent year-on-year improvement in October. For the first 11 months of last year, Hong Kong retail sales were down by 1.1 per cent. 

A government spokesman said that while tightened financial conditions will continue to weigh on local consumption demand, the further relaxation of social distancing measures and continued improvement in labour market conditions will provide support to retailers moving forward.

“In addition, the expected increase in visitor arrivals should benefit retail sales performance.”

According to the Census and Statistics Department (C&SD), online sales accounted for 12.8 per cent of the overall value of November sales, up 9.4 per cent year on year. In October, online sales were up by 35.1 per cent on year, and for the first 11 months of last year by 21.9 per cent. 

The categories with the greatest impact on retail sales in November were jewellery, watches and valuable gifts, down by 8.3 per cent on year, department store sales (down 19.3 per cent), apparel (down 16.4 per cent); and medicines and cosmetics (down 4.2 per cent). 

Sales of electrical goods and other consumer durable goods not elsewhere classified increased by 3.1 per cent, with supermarket sales and liquor essentially flat.