(Reuters) -Hong Kong’s retail sales by value fell by 13% in February from a year earlier, the 12th consecutive month of declines, government data showed on Monday.
Sales declined to HK$29.4 billion ($3.78 billion), with the percentage change widening from a revised 3.1% fall in January, reflecting the earlier arrival of the Lunar New Year this year.
In volume terms, February retail sales fell 15% from a year earlier, compared with a revised 5.1% decline in January.
Both the sales value and volume marked their biggest percentage decline since April 2024, when they were down 14.7% and 16.5% respectively.
Sales fell as shoppers spent less and fewer visitors from mainland China stayed over, while local residents spent more across the border, taking advantage of the strength of the local currency.
The retail sector “would continue to face challenge from the change in consumption patterns of visitors and residents,” a spokesman for Hong Kong’s government said.
Measures by the Chinese government to boost the mainland economy and the Hong Kong government’s efforts to promote tourism and major events would boost the retail sector, the spokesman added.
February visitor arrivals stood at 3.67 million, down 8.3% from the same month a year ago, data from the Hong Kong Tourism Board showed. That compared with 4.74 million in January, 4.26 million in December.
The number of mainland Chinese visitors stood at 2.77 million in February, down 14.7% from a year ago. That compares with 3.73 million in January and 3.10 million in December.
Sales of jewellery, watches, clocks and valuable gifts fell 13.5% year-on-year in February after an 18% drop in January.
Sales of clothing, footwear and allied products dropped 14.7% year-on-year in February after a 2.3% growth in January.
($1 = 7.7795 Hong Kong dollars)
(Reporting by Hong Kong newsroom; Editing by Louise Heavens and Andrew Heavens)
