HK retail sales plummet 13% YOY in February

Hong Kong's retail sales have dropped for 12 months in a row, with a 13% YOY decrease in February compared to a year ago.  

According to the latest figures released by the Census and Statistics Department, the value of total retail sales in February was provisionally estimated at HK$29.4 billion. The revised estimate of the value of total retail sales in January 2025 decreased by 3.1% compared with a year earlier.   

Of the total retail sales value in February, online sales accounted for 7.8%, with its value provisionally estimated at HK$2.3 billion, decreased by 7.3% compared with the same month in 2024.  

The revised estimate of online retail sales in January 2025 increased by 2.8% compared with a year earlier.  For the first two months of 2025 taken together, it was provisionally estimated that the value of online retail sales decreased by 2.4% compared with the same period in 2024. 

Analysed by a broad type of retail outlet in descending order of the provisional estimate of the value of sales and comparing the combined total sales for January and February 2025 with the same period a year earlier, the value of sales of other consumer goods not elsewhere classified decreased by 2.0%.  

This was followed by sales of jewellery, watches and clocks, and valuable gifts (-15.8% in value); commodities in supermarkets (-4.4%); wearing apparel (-5.4%); electrical goods and other consumer durable goods not elsewhere classified (-5.3%); commodities in department stores (-9.9%); fuels (-8.5%); motor vehicles and parts (-49.9%); footwear, allied products and other clothing accessories (-12.3%); books, newspapers, stationery and gifts (-10.9%); furniture and fixtures (-25.6%); Chinese drugs and herbs (-9.1%); and optical shops (-7.6%). 

On the other hand, the value of sales of food, alcoholic drinks and tobacco increased by 0.7% in the first two months of 2025 over the same period a year earlier.  This was followed by sales of medicines and cosmetics (+0.6% in value).  

Based on the seasonally adjusted series, the provisional estimate of the value of total retail sales decreased by 2% in the three months ending February 2025 compared with the preceding three-month period, while the provisional estimate of the volume of total retail sales decreased by 4.0%. 

A government spokesman said that the value of total retail sales increased further in February 2025 over the preceding month on a seasonally adjusted comparison. The year-on-year decline in the value of total retail sales in February 2025 widened, partly due to the earlier arrival of Chinese New Year in late January this year as compared to mid-February last year.  Taking the first two months of 2025 together to remove this effect, the value of total retail sales saw a narrower decline on a year-on-year basis than in December 2024.  

Looking ahead, the spokesman said that the various measures by the Central government to boost the Mainland economy and benefit Hong Kong, the local government's proactive efforts to promote tourism and mega events, and the sustained increases in employment earnings in the local labour market, would benefit the retail sector, though it would continue to face challenge from the change in consumption patterns of visitors and residents. 

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