What: Hong Kong’s retail sales rose 6.5% year-on-year in November 2025, marking a seventh consecutive month of growth driven by local consumption and inbound tourism.

Why it is important: The results highlight the ongoing disconnect between visitor arrivals and spending, underscoring the need for innovation and strategic adaptation in Hong Kong retail.

Hong Kong’s retail sector continued its recovery in November 2025, with sales climbing 6.5% year-on-year to HK$33.7 billion, marking the seventh consecutive month of growth. This improvement was fueled by a sustained rebound in local consumption and a significant increase in inbound tourism, particularly from mainland China, which accounted for over 3 million of the 4.19 million visitors during the month. Despite these gains, the sector’s underlying challenges remain evident, as volume growth lagged behind value growth and the first eleven months of the year saw only marginal improvement overall. Category-specific trends, such as a 3.6% rise in jewellery, watches, and valuable gifts and a 2% increase in clothing and footwear, point to evolving consumer preferences and the influence of tourism on luxury segments. However, the persistent gap between rising visitor numbers and actual retail spending highlights the need for retailers to innovate and adapt their strategies to changing market dynamics, currency pressures, and intensified regional competition.

IADS Notes: Inside Retail in December 2025 reported six consecutive months of retail sales growth, driven by local sentiment and inbound tourism, but noted that the sector’s overall performance for the year remained flat. Earlier in March and May 2025, Inside Retail highlighted the disconnect between increased visitor arrivals and retail spending, while Fashion Network and South China Morning Post in August and September 2025 emphasised the uneven recovery across categories and the need for ongoing adaptation. These findings underscore the importance of innovation and strategic repositioning as Hong Kong’s retail sector navigates structural change.

Solid growth in November Hong Kong retail sales