Hong Kong Retail Sales Decline 7.3% in November 2024 Amid Changing Consumption Patterns

Provisional statistics of retail sales for November 2024

The Census and Statistics Department (C&SD) released the latest figures on retail sales today (January 2).

The value of total retail sales in November 2024, provisionally estimated at $31.7 billion, decreased by 7.3% compared with the same month in 2023. The revised estimate of the value of total retail sales in October 2024 decreased by 2.8% compared with a year earlier. For the first 11 months of 2024 taken together, it was provisionally estimated that the value of total retail sales decreased by 7.1% compared with the same period in 2023.

Of the total retail sales value in November 2024, online sales accounted for 9.3%. The value of online retail sales in that month, provisionally estimated at $2.9 billion, decreased by 7.0% compared with the same month in 2023. The revised estimate of online retail sales in October 2024 increased by 8.4% compared with a year earlier. For the first 11 months of 2024 taken together, it was provisionally estimated that the value of online retail sales decreased by 1.2% compared with the same period in 2023.

After netting out the effect of price changes over the same period, the provisional estimate of the volume of total retail sales in November 2024 decreased by 8.3% compared with a year earlier. The revised estimate of the volume of total retail sales in October 2024 decreased by 4.8% compared with a year earlier. For the first 11 months of 2024 taken together, the provisional estimate of the total retail sales decreased by 8.7% in volume compared with the same period in 2023.

Analysed by broad type of retail outlet in descending order of the provisional estimate of the value of sales and comparing November 2024 with November 2023, the value of sales of jewellery, watches and clocks, and valuable gifts decreased by 5.4%. This was followed by sales of electrical goods and other consumer durable goods not elsewhere classified (-18.0% in value); wearing apparel (-7.5%); commodities in department stores (-12.3%); medicines and cosmetics (-2.9%); motor vehicles and parts (-34.4%); fuels (-9.9%); footwear, allied products and other clothing accessories (-1.7%); furniture and fixtures (-20.5%); books, newspapers, stationery and gifts (-6.5%); Chinese drugs and herbs (-19.3%); and optical shops (-11.8%).

On the other hand, the value of sales of commodities in supermarkets increased by 3.5% in November 2024 over a year earlier. This was followed by sales of other consumer goods not elsewhere classified (+1.4% in value); and food, alcoholic drinks and tobacco (+0.4%).

Based on the seasonally adjusted series, the provisional estimate of the value of total retail sales increased by 1.7% in the three months ending November 2024 compared with the preceding three-month period, while the provisional estimate of the volume of total retail sales increased by 1.4%.

Commentary

A government spokesman said that the value of total retail sales continued to decline in November from a year earlier alongside the change in consumption patterns and the relatively strong Hong Kong dollar.

Looking ahead, the spokesman said that the change in consumption patterns of visitors and residents will continue to weigh on the performance of the retail sector. Nevertheless, the introduction of various measures by the Central Government to boost the Mainland economy and benefit Hong Kong, including the resumption and expansion of the multiple-entry Individual Visit Scheme for Shenzhen since December, together with the SAR Government's various initiatives to boost market sentiment, as well as increasing employment earnings, would be conducive to spending by both visitors and residents in the local market.

Further information

Table 1 presents the revised figures on value index and value of retail sales for all retail outlets and by broad type of retail outlet for October 2024 as well as the provisional figures for November 2024. The provisional figures on the value of retail sales for all retail outlets and by broad type of retail outlet as well as the corresponding year-on-year changes for the first 11 months of 2024 taken together are also shown.

Table 2 presents the revised figures on value of online retail sales for October 2024 as well as the provisional figures for November 2024. The provisional figures on year-on-year changes for the first 11 months of 2024 taken together are also shown.

Table 3 presents the revised figures on volume index of retail sales for all retail outlets and by broad type of retail outlet for October 2024 as well as the provisional figures for November 2024. The provisional figures on year-on-year changes for the first 11 months of 2024 taken together are also shown.

Table 4 shows the movements of the value and volume of total retail sales in terms of the year-on-year rate of change for a month compared with the same month in the preceding year based on the original series, and in terms of the rate of change for a three-month period compared with the preceding three-month period based on the seasonally adjusted series.

The classification of retail establishments follows the Hong Kong Standard Industrial Classification (HSIC) Version 2.0, which is used in various economic surveys for classifying economic units into different industry classes.

These retail sales statistics measure the sales receipts in respect of goods sold by local retail establishments and are primarily intended for gauging the short-term business performance of the local retail sector. Data on retail sales are collected from local retail establishments through the Monthly Survey of Retail Sales (MRS). Local retail establishments with and without physical shops are covered in MRS and their sales, both through conventional shops and online channels, are included in the retail sales statistics.

The retail sales statistics cover consumer spending on goods but not on services (such as those on housing, catering, medical care and health services, transport and communication, financial services, education and entertainment) which account for over 50% of the overall consumer spending. Moreover, they include spending on goods in Hong Kong by visitors but exclude spending outside Hong Kong by Hong Kong residents. Hence they should not be regarded as indicators for measuring overall consumer spending.

Users interested in the trend of overall consumer spending should refer to the data series of private consumption expenditure (PCE), which is a major component of the Gross Domestic Product published at quarterly intervals. Compiled from a wide range of data sources, PCE covers consumer spending on both goods (including goods purchased from all channels) and services by Hong Kong residents whether locally or abroad. Please refer to the C&SD publication "Gross Domestic Product by Expenditure Component" for more details.

More detailed statistics are given in the "Report on Monthly Survey of Retail Sales". Users can browse and download this publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1080003&scode=530).

Users who have enquiries about the survey results may contact the Distribution Services Statistics Section of C&SD (Tel: 3903 7400; email: mrs@censtatd.gov.hk).

Carbon Reduction Action - Continuation Ceremony held today

The following is issued on behalf of the Environmental Campaign Committee:

The Environmental Campaign Committee (ECC) held the Carbon Reduction Action - Continuation Ceremony at the Applause Pavilion in Ocean Park Hong Kong today (January 4), signifying a new milestone in the Carbon Neutrality Publicity Campaign as members of the public join together to sustain efforts to reduce the carbon footprint.

The Secretary for Environment and Ecology, Mr Tse Chin-wan, officiated at the ceremony. Other officiating guests included the Chairman of the ECC, MsGrace Kwok; the Vice-Chairman of the ECC, Mr Wong Chi-keung; the Permanent Secretary for Environment and Ecology (Environment), Mr Eddie Cheung; and the Commissioner for Climate Change, Mr Arthur Lee.

Addressing the ceremony, Mr Tse said that the Carbon Neutrality Publicity Campaign launched by the ECC in 2022 has raised public awareness of carbon reduction. The Carbon Reduction Action rolled out in November last year aims to encourage the public to turn their awareness of carbon reduction into action by changing their daily habits to practise low-carbon living. In addition to active participation from citizens, the Campaign has received strong support from nearly 150 strategic and collaborating partners from public and business organisations, non-profit organisations, school sponsoring bodies, etc. Some organisations have further committed to taking on innovative and sustainable carbon reduction measures in their operations, thus contributing positively to achieving carbon neutrality by 2050 for Hong Kong. Looking ahead, Mr Tse said he hoped that members of the public would persevere and continue to integrate carbon reduction actions in their daily lives.

Ms Kwok mentioned in her welcoming remarks that, in line with the carbon reduction strategies of the Government's Hong Kong Climate Action Plan 2050, the ECC has encouraged the public through various channels to support waste reduction at source, energy saving and green transport. In the future, the ECC will continue to encourage the public to reduce carbon emissions and establish a culture of green and low-carbon living. She called on members of the public to work together and inspire their friends and families to change their habits and reduce carbon emissions together to create a greener and more sustainable living environment for future generations.

Mr Tse commended 17 key strategic partners of the Carbon Reduction Action at the ceremony for their planned adoption of innovative and sustainable carbon reduction measures in their operations, including energy-saving innovations, smart food-waste processing systems, green transport and promotion of carbon reduction education, which will contribute actively to achieving the Government's carbon reduction targets set in the Hong Kong Climate Action Plan 2050.

The ceremony was attended by about 300 individuals, including representatives from various corporate partners, student members of the Ocean Park Conservation Alliance – Seahorse Rangers and Student Environmental Protection Ambassadors of the ECC.

Carbon Reduction Action - Continuation Ceremony held today Source: HKSAR Government Press Releases

Carbon Reduction Action - Continuation Ceremony held today Source: HKSAR Government Press Releases

Carbon Reduction Action - Continuation Ceremony held today Source: HKSAR Government Press Releases

Carbon Reduction Action - Continuation Ceremony held today Source: HKSAR Government Press Releases

Carbon Reduction Action - Continuation Ceremony held today Source: HKSAR Government Press Releases