In Hong Kong, retail sales fell in July as consumers traveled abroad for the summer holidays.
Sales of jewelry, watches, clocks and luxury gifts fell 25 percent year-on-year to HK$3.75 billion ($480.7 million) this month, the Hong Kong government’s Statistics Department said on Friday. Overall retail sales fell 12 percent to HK$29.13 billion ($3.74 billion). By contrast, luxury goods sales were down 23 percent year-on-year in June, and sales overall were down 10 percent.
“Total retail sales fell further in July compared with the same month last year as changing spending patterns and the strengthening Hong Kong dollar continued to have an impact, partly due to increased overseas travel by residents over the summer holiday period,” a government spokesman said.
The downturn was due in part to a weak performance compared with the same period last year, when the recent reopening of the China-Hong Kong border led to a boom in tourism. The city gets most of its luxury revenue from tourists, mainly from mainland China.
Sales of hard luxury goods fell 15 percent to HK$30.25 billion ($3.88 billion) in the first half of the year. Sales across all retail categories fell 7 percent to HK$220.59 billion ($28.29 billion).
“The retail industry will still face challenges in the short term,” the spokesperson added. “However, various favourable government measures for Hong Kong should help stimulate the retail industry. Continued economic growth and rising employment income should also support the retail industry.”
Image: Tsim Sha Tsui shopping area in Hong Kong. (Shutterstock)
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