Hong Kong retail market expected to be hit by triple whammy of woes

Hong Kong will continue its downward drop in share value. A decline in tourists, a strong HK dollar, and Japanese consumption tax hike delay are to hit Hong Kong's retail industry. "Their revenue growth cannot gain any momentum," said Hanna Li Wai-Han of the United Overseas Bank. In April, visitor numbers had fallen 2.1% year on year and visitors from China fell 4%. There is no prediction of a short-term solution. Japan's tax hike delay also means that more people are shopping in Japan. The weakening yuan in China is also detracting Chinese visitors, worsening tourist numbers, with retail sales already down by 7.5% YoY as of April.

Sa Sa, the largest cosmetics store chain in Hong Kong, is expected to bear the brunt of the retail slump. Photo: Bruce Yan