Retail sales grew 7.8 percent in December
Hong Kong's retail sales rose 7.8 percent year-on-year in December to just over HK$36 billion, driven by sales of jewellery, watches and clocks, valuable gifts and other consumer goods, officials data showed on Thursday.  The percentage increase, though, was about half that seen in November.  For the whole of 2023, retail sales stood at HK$406.7 billion – a rise of about 16 percent compared with 2022.  Data from the Census and Statistics Department showed that sales of jewellery, watches and clocks and expensive gifts rose 55 percent in 2023 year-on-year, while sales of wearing apparel rose 43.5 percent, and medicines and cosmetics by 38.9 percent. Sales of furniture took the biggest hit, dropping 10 percent, while fuel sales declined 9.7 percent. Retail sales had gained ground from February following the border reopening and peaked in March with a 40 percent increase before slowing. That was because more Hongkongers started crossing the border to spend money, especially from the summer onwards, according to Annie Yau Tse, the chairwoman of the Hong Kong Retail Management Association. The association’s executive director, Bond Law, had a warning regarding the months ahead.  “The association is prudent about the outlook in 2024. We expect the retail sales to experience a single-digit or even low double-digit decline in the first half of this year, as there are a number of factors affecting the industry, such as the increasing trend of Hong Kong people travelling to the mainland, a strong Hong Kong dollar and a weaker renminbi, and the drop in local spending due to weak economy,” Law said.  “To address the challenges, our industry will focus on strengthening the experiential shopping elements. The government support is also needed to lead cross-sectoral collaborations among different stakeholders, such as tourism, transport, and the catering industry.” Authorities said they expect a recovery in inbound tourism and rising household income to continue to support retailers. “These factors, coupled with the government's efforts to promote mega events and launch various activities including 'Day x Night Vibes @18 Districts', should provide support to retail businesses,” a government spokesperson said.