RAPAPORT... Retail sales of jewelry and other luxury items declined in
Hong Kong in February, impacted by weakened consumer sentiment and the timing
of the Lunar New Year.
Revenue from jewelry, watch, clocks and other valuable gifts
fell 10% year on year to HKD 7.25 billion ($923.1 million) for the month, the municipality’s
Census and Statistics Department reported Monday. Sales in all retail
categories dropped 10% to HKD 40.67 billion ($5.18 billion).
Sales figures for luxury goods tend to be more unstable
during the first two months of the year due to the timing of the Lunar New
Year, as consumers tend to shop prior to the festival, a government
spokesperson said. This year, the holiday fell on February 5, as opposed to
February 16 last year, meaning more shopping would have been done in January this
year. Economic uncertainty also affected spending, according to the government.
“The weak performance of retail sales in recent months
reflected that [consumer] sentiment remained cautious amid various external
uncertainties,” the spokesperson added, noting that global pressure would
continue to affect retail sales in the near term. However, the improved
employment situation and growth in inbound tourism will help provide support,
he explained.
Tourist arrivals in Hong Kong rose 6% to 5.6 million in February, the Hong Kong Tourism Board reported. Of those, 4.6 million came from mainland China.
In the first two months of the year, sales of jewelry,
watches, clocks and other valuable gifts slid 2.8% to HKD 15.67 billion ($2
billion).
Image: Hong Kong harbor. (Pexels)
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