Hong Kong retail sales continue to decline year on year, with August turnover down 10.1 per cent on the same month last year. 

That follows a decline of 11.7 per cent in July, according to the Census and Statistics Department. For the first eight months of this year, retail sales have declined by 7.7 per cent year on year.

A government spokesman attributed the decline to the “continued impact of the change in consumption patterns,” along with the relatively strong Hong Kong dollar, increased outbound travel by residents during the summer holidays, and other factors. 

“Looking ahead, the retail sector will still face challenges in the near term,” he said, adding that an easing Hong Kong dollar exchange rate, alongside the recent US interest rate cut, would provide support to retailers. 

Domestic online sales accounted for 8 per cent of overall retail turnover in August, down by half a percentage point year on year, although year-to-date figures show little change in e-commerce behaviour. 

Among the categories registering strong declines in August were jewellery and watches, down by 24 per cent; supermarket sales, down by 3.6 per cent; and apparel, down by 13.4 per cent. Sales in department stores slid 15.8 per cent, while furniture and homewares sales were down by 21.3 per cent.

Sales of medicines and cosmetics rose by 4.5 per cent, and books and stationery by 3 per cent.