Hong Kong’s retail sales in April saw the sharpest drop in five years, with consumption dipped 9.8 percent to HK$38.8 billion or 9.5 percent in volume, said the Census and Statistics Department on 2 June 2014. Sales of luxury items such as jewellery and watches declined almost 40 percent in April year-on-year. It is believed that the big drop was due to the slower growth in mainland visitors, from 26.7 percent in March to 14.7 percent in April.
News from the HKSAR government pointed out the fall in retail sales in April was brought about by the plunge in the sales of jewellery, watches and valuable gifts. “Apart from a high base of comparison caused by a spike in gold-related sales a year earlier, it may also partly reflect some moderation in visitor spending after a prolonged period of brisk growth,” said the source.
Sales of commodities in department stores, electrical goods and photographic equipment, and miscellaneous consumer durable goods also recorded a drop by 1.3 percent, 8.3 percent and 22.3 percent respectively.
“Sales of many other goods that are more closely related to local consumption held firm, reflecting the positive local consumer sentiment amid full employment,” said the government who added that the short-term outlook for local retail sales will still be clouded by the base effects and changing visitor spending pattern. (Thumbnail courtesy: The Hong Kong Toursim Board)
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