Hongkong'S Total Retail Sales Fell 10.5% In The First Half Year.

Statistics released by the Hongkong Special Administrative Region Government Statistics released in August 2nd showed that total retail sales in Hongkong in the first half of this year fell by 10.5% over the same period last year, the worst level in the same period in 1999, and the total sales volume fell 10.1% year-on-year.

Not surprisingly, Hongkong's total retail sales fell continuously in sixteenth months in 6.

In the same month, total retail sales fell 8.9% to HK $33 billion 700 million, and total sales fell 9.6% year-on-year.

The two data are all compared.

The median estimate is 8.1% or 8.5% worse.

Analysts believe that the continued decline in the consumption of visitors, the depressed local stock market and the economic outlook have also suppressed the consumption desire of Hongkong consumers, and will continue to be similar in the second half of the year.

However, a spokesman for the Hongkong government said in its announcement that seasonally adjusted retail sales in the second quarter have improved slightly compared with the first quarter.

Compared with the first quarter of this year, the seasonally adjusted total retail sales in Hongkong increased by 2.8% and total sales increased by 1.9%.

"Looking forward to the future,

The performance of sales in the short term depends on the situation of the tourism industry and the impact of the uncertain economic outlook on the consumption intention of the public.

The spokesman said in a notice.

According to the analysis of retailers' main selling value from high to low, sales of jewellery, clocks and watches and gifts in June dropped by 20.4% compared with the same period last year.

Sales fell by 0.6% compared with the same period last year; sales of department stores fell by 10.5%; electrical and photographic equipment fell by 25.7% compared to the same period last year; Auto and auto parts dropped by 24.9% compared with the same period last year.

Zhou Shengsheng, one of Hongkong's leading jewellery retailers, expects net profit in the first half of this year to decline by five to 60%.

Zhou Dafu (1929.HK)'s two quarter business data showed that retail sales in Hongkong and Macao fell by 22% compared with the same period last year, while same store sales fell 24%.

The company has announced that it will open up the US market with diamond wholesale business to ease the performance pressure caused by China's economic slowdown.

On the other hand, data showed that sales of goods in Hongkong supermarkets increased by 1.9% over the same period last year, followed by drugs and cosmetics, while sales increased by 5%. Food, alcoholic beverages and tobacco increased by 2.9% over the same period last year.

Cosmetics retailer Sasa (00178.HK) fell 5.7% in the first quarter of June as compared with the same period last year, but has narrowed compared with a year-on-year decline of 15.1% in the previous quarter.

The growth of Hongkong's retail industry has long been dependent on the large consumption of mainland visitors in Hongkong. The continued decline in the number of visitors to Hong Kong over the past year seems to have been reversed in the near future.

A few days ago, Su Jinliang, director of the commerce and Economic Development Bureau of the Hongkong Special Administrative Region government, said that in the first two weeks of July, Hongkong recorded a rebound in the number of visitors to Hong Kong. The total number of visitors to Hong Kong increased by 5.3% and the number of mainland tourists rebounded by 3.5%. If the rally continues, it is expected to end 14 months in July.

The decline in hotel prices is considered to be one of the main factors. In addition, the recent strong yen and many terrorist attacks in Europe have also led some mainland travelers to travel to Hong Kong.

The latest official figures show that the total number of visitors to Hong Kong in June was 4 million 290 thousand, down 1.7% from a year ago, or narrowing significantly.

Among them, 3 million 190 thousand mainland passengers have narrowed sharply from 8.3% year-on-year in May to 3.8% in June.

However, the biggest problem of passenger consumption is the change of its consumer behavior pattern. The 2 executive director of Hongkong commercial service department, CB Richard Ellis, said.

"They used to mainly buy luxury goods, but now they are turning into food and entertainment consumption and buying medium priced fashions.

The whole retail industry is still in a period of adjustment.

The price of luxury goods, jewellery and so on is higher, and the significant drop in sales of these commodities will obviously reduce the overall retail sales data.

Lian Zhihao believes that this year's retail consumption data "no matter where to go" will continue to be negative growth.

The rent of the Hongkong core area has dropped by about 6% this year, and the decline of the rental base will be slowed down in the second half of the year, with a decline of 10% to 15% in the whole year.