In September, Retail Sales In Hongkong Became The Strongest In Two And A Half Years.

Hong Kong

Continued strong rebound performance, retail sales rose 5.6% in September, far exceeding

The expected 1% increase in most major retailers recorded a year-on-year increase in varying degrees.

A spokesman for the government commented that the retail sales in Hongkong accelerated in September, with a significant increase. The annual growth rate was the fastest in over two and a half years, reflecting the optimism of consumer sentiment and the continuous improvement of the tourism industry in Hong Kong.

The current favorable employment and income situation and the revival of the tourism industry in Hong Kong will continue to support the short-term sales performance of the retail industry.

According to the world clothing and shoe net, the estimated value of total retail sales in Hongkong was HK $35 billion 700 million in September. The total estimated value of total retail sales in 1-9 months increased by 0.9%.

After deducting the price changes, the provisional estimate of the total volume of retail sales in Hongkong in September rose 5.5% over the same period, and the total volume of retail sales in the total number of retail sales in 1-9 months rose by 0.9%.

Hard luxury is still the main category to boost the retail industry in Hongkong. In September, sales of jewellery, clocks and watches and precious gifts increased by 14.7%, while department stores continued to enjoy good sales, increased by 9.4% in September, and drugs and cosmetics increased by 12.7%.

Sales of related products and other clothing accessories increased by 1.2%; sales of optical stores increased by 5%.

Since March, Hongkong's retail industry has been growing for 7 months, which is undoubtedly driven by mainland tourists.

In September, the number of visitors to Hong Kong increased by 4.8% to 4 million 635 thousand, of which mainland tourists increased by 7.2% to 3 million 573 thousand.

Earlier, the Hongkong jewelers 0590.HK and Zhou Dafu both released the two quarter growth rate of growth. By the end of the two quarter of September, Lufu group achieved 17% growth in the same store sales, which was much better than the 5% in the first quarter, while the two quarter sales growth of Zhou Dafu in the same quarter increased from 5% in the first quarter to 13% in the same quarter.

As Hongkong's retail market has rebounded from the bottom, retail sales have been growing for 6 consecutive months, and the level of store rentals has tended to be reasonable after adjustment, and retailers are beginning to expand again.

At the peak of the 50 metre long section of Nathan road in Mong Kok, three shops had been reduced to only one store. Recently, the group rented new stores on the road, with a monthly rent of HK $550 thousand, a sharp decrease of 45% compared with the previous tenants.

International brands also regained their enterprising attitude.

Tiffany & Co. (NYSE:TIF), who rented a huge store on the 1st Beijing road in Tsim Sha Tsui a month ago, has a monthly rent of HK $6 million 480 thousand, which is 4.5% higher than that of the current tenant next year. It is the first time since the retail market in 2014 that the luxury luxury brand has been able to grab the front street shops.

In addition, during the National Day golden week, the number of mainland visitors to Hong Kong increased by 3.8% compared to the same period last year. The number of mainland visitors has doubled. Analysts expect that Zhou Dafu and Liu Fu Group will be driven by the increase of mainland customers and the improvement of local consumption climate.

Nomura Holdings Inc., Nomura international, said that the annual sales growth of Chow Tai Fook would be further higher than that of the bank's original forecast of 6%. The bank's outlook for the group in September was 4%.

Citigroup Inc., Citigroup revealed that the management of Lufu group was optimistic about the same store sales prospects in the Hongkong and Macao markets on the teleconference, and it is also expected that there will be a substantial increase in the same store sales in October.

However, management believes that the growth of same store sales in the second half of the fiscal year will be slower than that in the first half of fiscal year, but reiterates that the sales of the same stores in the mainland and Hong Kong and Macao will be double digits and single digit growth throughout the year.

Sasa International Holdings Limited (0178.HK) sales in Hong Kong and Macao during the National Day golden week can only be flat in the same period last year, while retail sales increased by 3% annually.

The group and the market believe that the adjustment of the tourist area network will continue to impact the group's performance.

Zheng Weixiong, chairman of the Hongkong Retail Management Association, said that Hong Kong's retail industry had already bottomed out. He predicted that the Mid Autumn Festival and golden week effect would benefit in October, and the retail sales in Hongkong would grow by 4%.

As for the retail market next year, if there is no major accident in the market, the property market in Hong Kong will be better. Under the wealth effect, the retail market will be better than this year next year. It is estimated that the retail sales will increase by 3 to 4% next year.

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