Total retail sales across all products in Hong Kong fell drastically to 21.4% in January 2020, for the 12th consecutive month. The many months of street protests coupled with the coronavirus impacted consumer sentiment locally and led to a further drop in tourist arrivals.
Image credit: geralt (Pixabay)
The Lunar New Year holiday season, normally a peak period for the retail trade was lacklustre due to fears sparked by the spread of the disease in Mainland China, and subsequently to other parts of the world. Government statistics show that retail sales across all categories during January 2020 stood at HK$ 37.7 bln.
During January, the sales of jewellery, watches, clocks and valuable gifts fell by a huge 41.6%, slightly lower than 43.5% drop reported in November.
However, government spokespersons have also noted that the situation is likely to have worsened in February, as the spread of the coronavirus has brought inward tourist arrivals to a virtual halt and disrupted consumer purchases and consumption-related activities.
The Hong Kong Retail Management Association (HKRMA) forecasts that the total retail sales value for the first half of 2020 would decrease by mid-double digits, ranging from -30% to -50%, with certain categories declining even worse than the average.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
