Retailers cautious despite another increase in sales
Retail sales in Hong Kong have risen for the sixth straight month, but trade representatives said the latest growth is not as strong as it seems, raising fresh concerns about the outlook for the sector. Total retail sales climbed 18.4 percent year-on-year in May to HK$34.5 billion, after a 14.9 percent increase in April. Sales of jewellery, watches and clocks, and valuable gifts led the way, posting a 51.8 percent jump. A government spokesman said total sales rose thanks in part to the revival of inbound tourism, adding that sales are expected to continue to improve in the coming months. "We cannot say that it's a very good month in May, but we just have a bit of a booster from the Golden Week," Annie Yau Tse, chairwoman of the Hong Kong Retail Management Association said. “The numbers seem to show relatively good growth, but if we compare to April 2023, the total sales value is actually about [HK$200 million] less,” said Bond Law, executive director of the association. The group added that a survey of 4,000 stores found that around 40 percent believed that traveller flow and business in June were only moderate and slightly better than before. Looking ahead, Tse said the consumption voucher scheme will only have a limited impact on the retail industry, and the economic situation on the mainland will determine how fast the industry can return to pre-pandemic levels, as it affects the purchasing power of mainland tourists.