Hong Kong Retail Industry Declines For The 16Th Consecutive Month

According to the data released by the Hong Kong SAR government on Wednesday, Hong Kong retail sales in May fell 32.8% year-on-year to HK $26.8 billion, the 16th consecutive month of decline.

A spokesman for the SAR government said that the stagnation of inbound tourism and weak employment development led to a decline in retail sales in Hong Kong. However, due to the gradual stabilization of the local epidemic, the decline of retail sales in May was better than 36.1% in April.

In May, the total retail sales in Hong Kong were 26.8 billion Hong Kong dollars, down 32.8% year on year. The total retail sales in the first five months of this year fell 34.8% year on year; Total retail sales fell 33.9% year on year. The sales volume of department stores dropped 37.8% year on year; Supermarket sales increased 7.3% year on year.

The severe downturn in the tourism industry is also an important reason for the poor performance of retail. In May, the number of inbound tourists in Hong Kong fell by 99.9% year on year to 8139; The number of tourists from the mainland also dropped by 99.9% to 5670.

The retail sales of other commodity categories in May are as follows:

Jewelry, watch and clock industry sales fell 69.7% year on year

The sales volume of drugs and cosmetics industry fell by 62% year on year

Sales of shoes, related products and other clothing accessories fell 39.7% year on year

The sales of optical glasses industry fell 35.6% year on year

Sales of alcohol and tobacco fell by 17% year on year

Chinese herbal medicine sales fell 35.4% year on year

Since Hong Kong society fell into turmoil last June, many international retailers have begun to withdraw. Earlier last month, the Greek jewelry brand Folli Follie closed all its stores in Hong Kong and dismissed all 60 of its employees in Hong Kong.

On June 24, Victoria's Secret, a famous American underwear brand, closed its flagship store in Causeway Bay, Hong Kong, which had been open for only two years. The reason was that Hong Kong's tourism industry declined sharply and the company faced huge economic losses due to the COVID-19 epidemic.