Hong Kong Retail Association: Retail sales value in March fell by 3.5%, a slight narrowing, expected to remain stable after the second quarter.

The chairman of the Hong Kong Retail Association, Annie Shek Yau-An, stated that the estimated retail sales value in March was 30.1 billion Hong Kong dollars, a decrease of 3.5% compared to the same period last year, slightly narrowing. She predicts that there is a chance for the situation to stabilize after the second quarter, with some months possibly seeing a slight increase. As for April, Shek Yau-An mentioned that the extremely low base period, the increasing number of Hong Kong people traveling abroad during the Easter holidays, and the impact of the global trade war on consumer willingness have all led to an overall unsatisfactory business environment. However, some businesses have reported an increase in sales. About 30% of the interviewed members believe that there will be an increase, mainly in cosmetics, jewelry, watches, and personal care products; 10% believe that the situation will remain stable, mainly in supermarkets and convenience stores; and 60% believe that there will be a decrease, mainly in clothing, electronics, department stores, food, and furniture, with the decrease ranging from single to low double digits. As for May, she mentioned that the situation during this year's May Day Golden Week is not as good as last year, but better than regular weekends. One-third of the surveyed businesses expect an increase, mainly in cosmetics and health foods, with a low double-digit increase expected, especially in cosmetics; one-third expect stability, and one-third expect a decrease. It is anticipated that supermarkets and similar businesses will see stable or single-digit increases, while department stores and food stores will see stable or single-digit decreases. It is expected that there will be a double-digit decrease in electronics and furniture. Shek Yau-An mentioned two major factors affecting the retail sector in Hong Kong's economic environment. Firstly, retailers are concerned that if the trade war continues, it will impact the stock market and economy, leading to increased prices and a weakening of consumer purchasing power. Regarding the optimization of the mainland's departure tax refund policy, she believes that this will increase the burden on the Hong Kong retail industry and may further attract mainland consumers. Therefore, she urges Hong Kong retailers to transition or create new products, improve services, and introduce new shopping experiences.