The Census and Statistics Department (C&SD) released the latest figures on retail sales today (August 1).
The value of total retail sales in June 2024, provisionally estimated at $29.9 billion, decreased by 9.7% compared with the same month in 2023. The revised estimate of the value of total retail sales in May 2024 decreased by 11.4% compared with a year earlier. For the first half of 2024, it was provisionally estimated that the value of total retail sales decreased by 6.6% compared with the same period in 2023.
Of the total retail sales value in June 2024, online sales accounted for 7.8%. The value of online retail sales in that month, provisionally estimated at $2.3 billion, increased by 5.2% compared with the same month in 2023. The revised estimate of online retail sales in May 2024 increased by 20.2% compared with a year earlier. For the first 6 months of 2024 taken together, it was provisionally estimated that the value of online retail sales decreased by 0.3% compared with the same period in 2023.
After netting out the effect of price changes over the same period, the provisional estimate of the volume of total retail sales in June 2024 decreased by 11.2% compared with a year earlier. The revised estimate of the volume of total retail sales in May 2024 decreased by 12.7% compared with a year earlier. For the first half of 2024, the provisional estimate of the total retail sales decreased by 8.2% in volume compared with the same period in 2023.
Analysed by broad type of retail outlet in descending order of the provisional estimate of the value of sales and comparing June 2024 with June 2023, the value of sales of jewellery, watches and clocks, and valuable gifts decreased by 23.1%. This was followed by sales of other consumer goods not elsewhere classified (-1.2% in value); commodities in supermarkets (-0.5%); wearing apparel (-13.2%); food, alcoholic drinks and tobacco (-5.7%); electrical goods and other consumer durable goods not elsewhere classified (-4.7%); commodities in department stores (-18.6%); motor vehicles and parts (-25.1%); fuels (-12.3%); furniture and fixtures (-9.8%); footwear, allied products and other clothing accessories (-9.1%); Chinese drugs and herbs (-2.8%); and optical shops (-13.9%).
On the other hand, the value of sales of medicines and cosmetics increased by 3.4% in June 2024 over a year earlier. This was followed by sales of books, newspapers, stationery and gifts (+0.1% in value).
Based on the seasonally adjusted series, the provisional estimate of the value of total retail sales decreased by 5.8% in the second quarter of 2024 compared with the preceding quarter, while the provisional estimate of the volume of total retail sales decreased by 6.8%.
Commentary
A government spokesman said that while the value of total retail sales continued to decline in June from a year earlier amid the changing consumption patterns of visitors and residents and the strong Hong Kong dollar, the rate of decline narrowed further. A slight increase of 2.3% was seen on a seasonally adjusted month-to-month comparison, reflecting signs of stabilisation in retail activities.
Looking ahead, the spokesman said that the retail sector will still face challenges in the near term. Nonetheless, the Central Government's various measures benefitting Hong Kong, as well as the SAR Government's strenuous efforts to promote a mega event economy and support the development of the local retail sector, should benefit the sector. In addition, continued growth of the economy and rising employment earnings should also provide support to the retail sector.
The spokesman also added that the SAR Government will continue to strive to support the development of the local retail sector. One of the directions is to continue supporting small and medium-sized enterprises, including those in the retail sector, in upgrading and transformation, and market development. Last month, the SAR Government launched the "E-commerce Easy" under the BUD Fund with a view to assisting enterprises to develop the Mainland market through electronic commerce (e-commerce) business. The Hong Kong Trade Development Council (HKTDC) is also organising the inaugural Hong Kong Shopping Festival on Mainland e-commerce platforms in August to drive publicity exposure of Hong Kong brands and products in the Mainland, and help Hong Kong enterprises expand into Mainland e-commerce business. Furthermore, the HKTDC has organised a number of large-scale public exhibitions during the summer holidays, such as the recently held Hong Kong Book Fair in July and the upcoming Food Expo. These events are expected to help attract visitors and local consumers to shop, thereby boosting the retail sector.
Further information
Table 1 presents the revised figures on value index and value of retail sales for all retail outlets and by broad type of retail outlet for May 2024 as well as the provisional figures for June 2024. The provisional figures on the value of retail sales for all retail outlets and by broad type of retail outlet as well as the corresponding year-on-year changes for the first half of 2024 are also shown.
Table 2 presents the revised figures on value of online retail sales for May 2024 as well as the provisional figures for June 2024. The provisional figures on year-on-year changes for the first half of 2024 are also shown.
Table 3 presents the revised figures on volume index of retail sales for all retail outlets and by broad type of retail outlet for May 2024 as well as the provisional figures for June 2024. The provisional figures on year-on-year changes for the first half of 2024 are also shown.
Table 4 shows the movements of the value and volume of total retail sales in terms of the year-on-year rate of change for a month compared with the same month in the preceding year based on the original series, and in terms of the rate of change for a three-month period compared with the preceding three-month period based on the seasonally adjusted series.
The classification of retail establishments follows the Hong Kong Standard Industrial Classification (HSIC) Version 2.0, which is used in various economic surveys for classifying economic units into different industry classes.
These retail sales statistics measure the sales receipts in respect of goods sold by local retail establishments and are primarily intended for gauging the short-term business performance of the local retail sector. Data on retail sales are collected from local retail establishments through the Monthly Survey of Retail Sales (MRS). Local retail establishments with and without physical shops are covered in the MRS and their sales, both through conventional shops and online channels, are included in the retail sales statistics.
The retail sales statistics cover consumer spending on goods but not on services (such as those on housing, catering, medical care and health services, transport and communication, financial services, education and entertainment) which account for over 50% of the overall consumer spending. Moreover, they include spending on goods in Hong Kong by visitors but exclude spending outside Hong Kong by Hong Kong residents. Hence they should not be regarded as indicators for measuring overall consumer spending.
Users interested in the trend of overall consumer spending should refer to the data series of private consumption expenditure (PCE), which is a major component of the Gross Domestic Product published at quarterly intervals. Compiled from a wide range of data sources, PCE covers consumer spending on both goods (including goods purchased from all channels) and services by Hong Kong residents whether locally or abroad. Please refer to the C&SD publication "Gross Domestic Product by Expenditure Component" for more details.
More detailed statistics are given in the "Report on Monthly Survey of Retail Sales". Users can browse and download this publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1080003&scode=530).
Users who have enquiries about the survey results may contact the Distribution Services Statistics Section of the C&SD (Tel: 3903 7400; E-mail: mrs@censtatd.gov.hk).
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