Hong Kong retail sales in the second half of the industry optimistic

Hong Kong’s retail sales rose for three months, benefiting from rising domestic demand and local consumption in May. The value of total retail sales increased slightly by 0.5% year-on-year. There are industry and economists believe that the retail market conditions gradually stabilized, is expected in the second half can be recorded 2% to 3% growth.

The Census and Statistics Department (C & SD) announced yesterday that the provisional estimate of total retail sales in Hong Kong in May was $ 35.94 billion, up 0.5% yoy and sales volume up 0.7%. In addition to supermarkets, clothing and durable consumer goods, other retail categories have recorded an increase in sales of jewelery, watches and watches and valuable gifts rose 1.4%, electrical and photographic equipment is down 14%.

Lack of holiday effect in June the performance of fear of falling

Hang Seng Bank Acting chief economist Xue Junsheng that the retail market gradually stabilized. With the recovery in visitor arrivals and the good performance of Hong Kong’s asset markets over the past few months, it will help support local consumption and believe that retail sales growth in the second half will widen to 2% to 3%. He also pointed out that private consumption expenditure continued to grow steadily in the first quarter of Hong Kong, reflecting a good local consumer sentiment and a narrowing in the second half of the year.

Shanghai Commercial Bank Research Director Lin Junhong that retail sales in May rose less than expected. Unlike the Dragon Boat Festival last year in June this year, appeared in May this year, but failed to promote retail sales recorded more than 1% annual growth, worrying about the Dragon Boat Festival retail sales in June will fall again. However, he is of the view that the recovery of the local consumer confidence driven by the wealth effect of the Hong Kong stock market and the property market is expected to gradually reflect in the market. With the increase in visitor arrivals, it is expected that the retail sales in the second half will be recorded between 2% and 3% increase.

The second half of the big event favorable luxury

Hong Kong Retail Management Association Chairman Zheng Weixiong that retail sales in May performance positive. Among them, sales of clothing and footwear category fell 0.8%, compared to last year’s decline of 5% this year is impressive, and pointed out that the category of merchandise during the Dragon Boat Festival early price reduction promotions, resulting in sales fell but sales rose 1.5%. As the second half of the year there will be a number of large-scale events, such as electric formula racing, gaming activities, so the second half of the positive view of retail sales, is expected to rise 0 to 1% throughout the year, which is more optimistic about the sales of jewelery and watches.

Zheng also pointed out that the association members generally no plans to open a new store, but also will not reduce the number of employees and shops. However, due to changes in passenger consumption patterns, more travel experience in Hong Kong and less shopping, so he believes that retailers need to diversify their products, tailor-made products for customers to increase the attractiveness.

Government spokesman said retail sales rose slightly in May, reflecting the relative improvement in tourism, as well as tough local consumer demand. Short-term prospects depend on the pace of tourism recovery and the performance of local consumer sentiment at peripheral uncertainties.