In January, Hong Kong's retail sector witnessed a complex performance with both positive and negative indicators. Provisionally valued at $35.3 billion, the total retail sales declined by 3.2% compared to December. After seasonal adjustments, this figure represents a 5.2% decrease year-over-year. Interestingly, online sales contributed significantly, accounting for 6.9% of the total retail value and experiencing a modest 3.5% increase month-on-month. The retail landscape saw varied outcomes across different categories, reflecting shifts in consumer preferences and spending habits.

The retail environment in Hong Kong is undergoing significant transformations driven by evolving consumer behaviors. Notably, certain sectors experienced growth, such as miscellaneous consumer goods, which saw a 6.6% rise year-over-year. Supermarket commodities also performed well, with a 4.9% increase, while food, alcoholic beverages, and tobacco recorded a substantial 10.9% uplift. Additionally, clothing sales edged up by 1.2%, and there were gains in pharmaceuticals and cosmetics (4.3%), department store items (0.5%), and footwear and accessories (7.1%). These figures highlight the resilience of some retail segments in adapting to changing market conditions.

However, not all areas fared equally well. The value of jewelry, watches, clocks, and valuable gifts plummeted by 17.9%. Electrical goods suffered a 10.5% decline, and motor vehicles and parts experienced a staggering 52.6% drop. Fuels (-4.3%), books and stationery (-5.1%), furniture (-26.4%), traditional Chinese medicines (-4.6%), and optical products (-4.4%) also faced downturns. These declines underscore the challenges faced by specific retail categories in maintaining their market positions amid shifting consumer priorities.

The Census and Statistics Department anticipates that the near-term outlook for Hong Kong's retail sector will remain influenced by changes in visitor and resident consumption patterns. As consumer trends continue to evolve, retailers must adapt their strategies to meet new demands and navigate the complexities of the current economic environment. This dynamic situation calls for innovative approaches to retain customer interest and drive sales growth.