HK Retail Sales Jump 7 Percent In January

Hong Kong’s retail sales saw a seven percent year-on-year increase in January – the second consecutive month of growth.

The government said on Thursday that sales value is provisionally estimated at HK$36.2 billion.

Sales of Chinese drugs led the way, soaring nearly 39 percent. Jewellery, watches and valuable gifts also sold well, jumping 23 percent.

The government attributed the improvement to stronger consumer sentiment, as well as the fact that the Lunar New Year fell in January rather than February this year.

It added that a return to normalcy after the pandemic and the return of visitors will give the sector a further boost.

"The continued return of economic activities to normalcy and further rebound in the number of visitor arrivals will benefit the retail sector. Improved labour market conditions will also provide support," a government spokesman said.

The Hong Kong Retail Management Association said the seven percent increase was expected, but cautioned that the base numbers in 2022 were low because Hong Kong was in the midst of a severe Omicron outbreak at the time.

"The positive [retail] numbers show that the market is on the up trend, but is that a very significant improvement? That's definitely not the case. It will take time," the association's chairwoman, Annie Yau Tse, said.

She said the sector is facing problems such as manpower shortage and potential rent hikes, and called on landlords to be lenient.

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