Chet Qiu Anyi: Hong Kong's January retail sales decline narrowed, expecting business to improve in March.

In January, the total sales value of the retail industry in Hong Kong was HK$35.3 billion, a decrease of 3.2% year-on-year, significantly narrower than the 9.6% decline in December. Annie Tse, Chairman of the Hong Kong Retail Management Association, said that although the overall sales volume in January seemed to have narrowed, the situation this year is different from last year as Chinese New Year falls in January. Therefore, sales in January this year should be better compared to last year as citizens need to prepare for the new year, leading to an increase in sales of supermarkets, food, clothing, and cosmetics. As for February, the association surveyed 4,170 retail store members employing 80,000 staff and found that the situation in February was less than ideal. Less than one-tenth of the surveyed members reported stable sales, while over 90% reported single-digit or low double-digit declines, involving convenience stores, electronics, supermarkets, personal care, cosmetics, department stores, food, furniture, health food, jewelry, watches, etc. The clothing category saw the most noticeable decline, exceeding 40%. Tse explained that the Chinese New Year fell in February last year, which led to a higher base. This year, the Chinese New Year festivities began early in February, and citizens had already completed their new year shopping, and some had even traveled north or abroad. In addition, tourists visiting Hong Kong are no longer solely focused on shopping, contributing to a difference in retail spending. Certain industries like electronics did not see a boost in sales as there were no extremely cold days in February this year. The jewelry and watch industry was also affected by high gold prices, leading citizens to reduce their purchases or wait for prices to drop before making a purchase, affecting sales. She pointed out that around 30% of the surveyed members believe that sales in March will increase by single-digit or low double-digit percentages, while over 20% expect sales to remain stable. Over 40% anticipate a decline in sales by single-digit or low double-digit percentages, affecting industries including electronics, clothing, furniture, jewelry, watches, and department stores.