What: Hong Kong sales are stabilizing thanks to government-backed consumption incentives.

Why it is important: Consumption Voucher Schemes clearly boost sales, however retailers need to top up these schemes with special offers to be more attractive to customers than the others, leading to a tension on retail prices.

August is the seventh month of uninterrupted retail sales growth compared to 2020, thanks to a stabilizing Covid-19 situation and a government-funded consumption voucher boost (CVS). August itself grew +11.9% compared to 2020, and in terms of year to date until end of July, retail sales grew as a whole by +8.1%.

The categories growing the most were jewellery, watches, clocks and luxury items, however fashion items went through an even higher peak, thanks to the additional incentives proposed by local retailers coming on top of CVS.

The lack of Chinese tourists is still heavily felt, even though tourism as a whole is now back in the black in terms of net numbers of arrivals.

Hong Kong retail sales rise again as consumption vouchers kick in