Xie Qiu An Yi: The overall retail start is on a positive trend

Hong Kong Retail Management Association chairperson Grace Tse-Hau An-yee said that, looking at the combined figures for the first two months of this year, retail sales up 11.8% year-on-year is ideal, reflecting a turnaround in consumer sentiment. Sales of automobiles, electrical appliances and other consumer goods without further classification have continued to rise. Jewellery and accessories retail sales have also benefited from higher gold prices. In addition, ongoing major event activities have attracted visitors from the Mainland to Hong Kong, so the overall retail business got off to a promising start.

She said that, according to a survey of members, the retail market in March returned to normal. However, retailers are worried that developments in the Middle East will affect stock markets and consumer sentiment. As for the market situation during the Easter and Qingming Festival holidays in April, she said that outbound consumption by Hong Kong residents traveling north continues, and overseas travel also continues, which is not favorable for the local consumer market. Moreover, Mainland visitors doing same-day round trips to Hong Kong do not put emphasis on shopping, so Mainland visitors have some reservations about the retail sector’s ability to boost business. Therefore, retailers hold a cautious view. For the whole of April, the survey showed that half of the members said their business would record an increase, 30% expected their business to remain steady, and 10% anticipated a marginal decline.

She said that with uncertainty in the Middle East situation, retailers are worried about higher freight costs and supply chains. If higher costs are passed on to consumers, it will affect purchasing intent. As for the retail outlook for the first half of the year, she said that although retail momentum was strong in January and February this year, the unclear Middle East conflict affects consumer confidence. The situation has been changing significantly, and for now she maintains the forecast that retail sales in the first half of this year will be flat year-on-year.