Hong Kong Retail Management Association: The retail sector showed positive momentum in January and February. It is expected that retail sales in the first half of the year will remain flat compared to the same period last year.

Chairperson of the Hong Kong Retail Management Association, Shirley Yip, stated that the retail momentum in January and February of this year was positive, but the uncertainty in the Middle East conflict has affected consumer confidence. Currently, the situation is changing rapidly, but it is expected that the retail sales for the first half of this year will remain flat compared to last year. She pointed out that the combined retail sales for the first two months of this year increased by 11.8% year-on-year, which is considered ideal, reflecting an improvement in consumer sentiment. The sales of automobiles, electronics, and unclassified consumer goods continued to rise, and the sales of jewelry benefited from the increase in gold prices. Additionally, with major events attracting visitors from mainland China, the overall retail sector started the year on a positive note. According to a survey of members, the retail market in March returned to normal, but retailers are concerned about the impact of the Middle East situation on the stock market and consumer sentiment. As for the market conditions during the Easter and Qingming Festival holidays in April, the continuous spending by Hong Kong residents traveling to the mainland and other countries is not favorable for the local consumption market. Mainland Chinese visitors may also come to Hong Kong for short trips without focusing on shopping, which has led retailers to take a cautious approach. She further noted that for the entire month of April, the survey shows that half of the members expect an increase in business, while three-tenths anticipate business to remain stable and one-tenth expect a decrease. Regarding the Middle East situation, she mentioned that the uncertainty in the Middle East has caused concerns among retailers about the potential increase in shipping costs and disruptions in the supply chain. If the increased costs are passed on to consumers, it may affect their purchasing intentions.