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Rachel Yeo

Hong Kong’s retail sales fell 4.2 per cent in November from a year ago, the largest drop since March, although authorities have predicted better performance ahead due to the axing of most remaining Covid-19 rules and an expected rise in inbound travellers.
Provisional figures released by the Census and Statistics Department on Wednesday showed November sales totalled HK$29.5 billion (US$3.8 billion), down from HK$31.9 billion in October.
The figure marked the largest monthly drop in retail sales performance since March, when retail sales fell 13.8 per cent.
Total retail sales for the first 11 months also declined 1.1 per cent compared with the same period in 2021.
Hong Kong logs worst monthly export performance since 1954 with 24.1 per cent drop
But online retail sales for November increased 9.4 per cent from the same month last year, reaching HK$3.8 billion, accounting for 12.8 per cent of all sales.
A government spokesman said retail business softened after improving in the preceding month. For October and November combined, the value of retail sales remained largely stable compared with a year earlier.
“While tightened financial conditions will continue to weigh on local consumption demand, the further relaxation of social-distancing measures and continued improvement in labour market conditions will provide support,” he said.
The sector also stood to benefit from an expected increase in inbound arrivals taking advantage of the end to travel curbs after three years.


Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association, said November’s sales figures were not ideal, pointing to a survey by the organisation that found more than 60 per cent of retailers had suffered a drop in business.
Retailers that witnessed an uptick in trade only reported growth in the single digits, she added.
“November’s performance was also weaker because the ‘0+3’ scheme was still in effect at the time, which encouraged local residents to travel overseas. So, the local retail sector was impacted,” Tse explained, referring to the three-day medical surveillance period that was previously mandatory for inbound travellers.
Hong Kong’s restaurant ranks expand faster than before the pandemic
The latest figures do not reflect the government’s significant round of easing of Covid-controls last month, including dropping social-distancing measures, the vaccine pass scheme, and mandatory polymerase chain reaction (PCR) tests for inbound travellers, as well as quarantine requirements for close contacts.
Tse predicted better figures for December, traditionally a peak spending season.
Will reopening border with mainland China help Hong Kong’s economy bounce back?
She added uncertainty remained over what the short-term impact on the retail sector would be when mainland China and Hong Kong introduced quarantine-free travel from Sunday.
“Many local retailers will still be cautious in the next half of the year, as the Covid-19 situation on the mainland will still need some time to recover. As to whether mainlanders will immediately come here to shop, it will not happen in the short-run,” she said.
In the third quarter of last year, Hong Kong’s gross domestic product (GDP) fell by 4.5 per cent from the same period in 2021. The figure also marked a decline of 1.3 per cent from the preceding quarter, while the real GDP for the first three quarters as a whole dropped by 3.3 per cent compared with that of 2021.


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Hong Kong retail sales fall 4.2 per cent in November, but city bets on uptick following easing of Covid curbs

Hong Kong’s future retail sales performance is expected to improve with the widespread axing of Covid-19 restrictions and an anticipated rise in inbound travellers, the government has said. Photo: Jelly Tse

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Many businesses shut down as pandemic controls gripped the city. Photo: Yik Yeung-man

Economists are optimistic about sectors like retail finding their feet with the reopening of the border with mainland China in January. Photo: Edmond So

Scrapped dining restrictions bring back the buzz to banquets. Photo: May Tse

Hong Kong records worst monthly export performance since 1954 with plunge of 24.1 per cent in November

Hong Kong’s trade performance will continue to face huge challenges in the near term, the government says. Photo: Winson Wong

Hong Kong’s exporters have faced a number of challenges. Photo: Winson Wong

News

Hong Kong

Total value of sales in November was HK$29.5 billion, down from HK$31.9 billion recorded in October
Latest figures do not reflect government’s lifting of Covid-19 measures last month


The latest figures do not reflect the government’s drastic lifting of Covid-19 measures last month.


Hong Kong reopens: life after quarantine

Hong Kong retail sales fall 4.2 per cent in November, but city bets on uptick following easing of Covid curbs

Total value of sales in November was HK$29.5 billion, down from HK$31.9 billion recorded in October Latest figures do not reflect government’s lifting of Covid-19 measures last month

Total value of sales in November was HK$29.5 billion, down from HK$31.9 billion recorded in October

Latest figures do not reflect government’s lifting of Covid-19 measures last month