HONG KONG. Hong Kong’s total retail sales fell by -4.1% in September year-on-year, the smallest decline since October 2015 according to the Special Administrative Region’s Census and Statistics Department.
This is a significant improvement on the -10.5% slump seen in August and offers Hong Kong’s retailers some cause for optimism after 19 months of deteriorating sales.
After netting out the effect of price changes over the same period, September saw a -3.9% decrease year-on-year,
The figures (which include airport and downtown travel retail sales) are an important indicator for travel retailers as the local market is so influenced by sales to tourists in general and Mainland Chinese visitors in particular.
The Census and Statistics Department’s results cover the total spectrum of retail sales from high-end boutiques to supermarkets but within the figures certain categories are particularly closely monitored by travel retailers.
Sales of jewellery, watches and other valuable gifts for example, decreased by -12.3% in September year-on-year, underlining the continuing difficult climate for high-end items, while apparel sales increased by +1.8%.
The results will be closely monitored by Airport Authority Hong Kong, which launched the first two of three planned core category tenders on 31 October, and prospective bidders.
The two tenders are for the liquor & tobacco concession and perfume/cosmetics & fashion concession at Hong Kong International Airport.
The authority described the tenders as “an extraordinary business opportunity in a premier location”.
Hong Kong International Airport’s growing and diverse passenger base, together with the Authority’s highly proactive marketing campaigns and heavy retail investment strategy are certain to attract a highly competitive field for the tender, as documented by The Moodie Davitt Report.
Bids will close on 2 February 2017 and the winners named in Q2 2017.
