Hong Kong retail sales growth slowed in December – but not enough to impact a strong annual improvement.
The Census and Statistics Department (C&SD) says sales for the full year increased by 16.2 per cent in value and 13.8 per cent in volume over 2022, while online sales fell by 5.9 per cent reflecting consumers’ return to physical stores in the post-Covid era.
December’s sales rose by a more modest 7.8 per cent, about half the rate of November’s revised rate of 15.9 per cent. However, when calculated by taking into account the effect of price changes, December’s sales were only 4.8 per cent ahead of the same month in 2022, a lesser rate than November’s 12.4 per cent growth.
A sin turn driving further retail sales growth.
“Rising household income also bodes well for local consumption. These factors, coupled with the government’s efforts to promote mega events and launch various activities including “Day x Night Vibes @ 18 Districts”, should provide support to retail businesses.”
In December, online sales accounted for 7.8 per cent of all retail turnover – around HKD 2.8 billion (US$358 million). That was down by 29.7 per cent against December 2022, while last November’s online sales by 26.3 per cent year on year.
The big movers by category in December were watches and jewellery, up by 50.1 per cent, apparel up by 19.3 per cent, and medicines and cosmetics by 32.7 per cent.
Spending in supermarkets fell by 6.3 per cent and on electronics by 27.9 per cent.
For the whole of last year, the main growth categories were watches and jewellery (up 54.9 per cent, apparel (43.5 per cent), medicines and cosmetics (38.9 per cent) and footwear and accessories (29.1 per cent).
