05-01-2021
Under the threat of Covid-19, Hong Kong posted a record fall by 25 percent in total retail sales over the first 11 months of 2020, although the decline narrowed in November, according to government statistics.
Data released by the Census and Statistics Department yesterday said the total value of retail sales plunged by 25.3-percent between January and November 2020 compared to the same period a year before. The lack of tourists amidst travel restrictions worldwide and the weak spending sentiment in the city are believed to account for the downward trend.
“As inbound tourism remains at a standstill, and the fourth wave of the local epidemic has weighed on local consumption sentiment since the latter part of November, the business environment of the retail trade will remain challenging in the near term,” the government noted.
While the sustained health crisis will still be posing challenges to local retailers, the availability and effectiveness of the long-awaited vaccines shall be the clue, among others, to business revival.
When comparing November 2020 with the same month in 2019, the value of total retail sales decreased by four percent to HK$28.7 billion. The value of sales of jewellery, watches and clocks, and valuable gifts saw a 16.1-percent drop, a narrowed decline when compared with the year-on-year figures for September (-25.7%) and October (-26.6%).
The Hong Kong Retail Management Association chairwoman Annie Tse Yau On-yee estimated retail sales could decline around 25 percent in 2020 as in-store foot traffic did not equivalent to actual purchasing. She added retailers had been more conservative in purchasing stock for the coming Lunar New Year season in February, as they expected the health crisis to continue to dominate. (Photo courtesy: InvestHK)
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