Editorial | Hong Kong retail sector must wake up to changing trends in spending
- A good experience for visitors and polite service would be a starting point if city wants to once again be a shoppers’ paradise
Retailers need to tap into the prevailing pattern of consumption, and adapt quickly to changes. Hong Kong is tapping out, if disappointing sales statistics are any guide.
The figures are for May, which included the Labour Day “golden week” holiday. The value of retail sales fell by 11.5 per cent from the same month last year, according to official figures.
It was not a one-off, coming after a 14.7 per cent year-on-year decline in April sales. In the first five months this year, retail sales fell by 6.1 per cent compared with 2023.
There are excuses. But they will not hold water for long.
The retail industry faces a challenge to be more creative and focused on friendly service. The numbers do reflect some circumstances beyond the city’s control, such as the migration of shoppers to the internet, a strong Hong Kong dollar behind the rise in spending by locals crossing to the mainland, and poor weather taking the shine off public holidays.
Against that background there is concern that the liberalisation of mainland travel permits for non-Chinese Hong Kong permanent residents will further siphon turnover from the local economy. But it has been rightly pointed out that it will make the city more attractive to overseas talent.
