What: Hong Kong's retail sales value declined 11.8% year-on-year in July, extending the downward trend from June.

Why it is important: The performance of different retail sectors provides insights into shifting consumer priorities and spending patterns in a key Asian market.

Hong Kong's retail sales value reached USD 29.1 billion in July, marking an 11.8% year-on-year decline and extending June's revised 9.7% reduction. For the first seven months of the year, retail sales fell 7.3% compared to the same period last year. Online sales accounted for 7.8% of total retail sales in July.

A government spokesman attributed the decline to changing consumption patterns, the strong Hong Kong dollar, and increased outbound travel during summer holidays. Most retail sectors experienced year-on-year drops, including supermarkets (-4.2%), jewellery and watches (-25%), wearing apparel (-16.6%), and food and beverages (-4.1%).However, some sectors showed growth, with medicines and cosmetics reporting a 3.5% increase and books, newspapers, stationery, and gifts seeing a 26.1% rise. The government acknowledged ongoing retail challenges and promised continued measures to address the situation.

Government flags continued challenges as Hong Kong retail sales further decline