Hong Kong's retail industry has plummeted, with performance falling for 10 consecutive months! Jewelry and watch sales fell by over 40% in November

Under the shadow of the six month long regulatory turmoil, Hong Kong's retail industry has been the first to suffer a heavy setback. On January 3rd, the Statistics Department of the Hong Kong Special Administrative Region Government released the latest retail performance. In November 2019, the total sales value of the retail industry decreased by 23.6% year-on-year, marking the 10th consecutive month of decline. Among them, the sales value of jewelry, watches, and precious gifts decreased by 43.5%, becoming a "disaster zone".

According to data from the Statistics Department of the Hong Kong Special Administrative Region Government, the total sales value of the retail industry in November 2019 was temporarily estimated to be 30 billion yuan, a decrease of 23.6% year-on-year. After deducting price changes, the total sales volume of the retail industry in November decreased by 25.4%.

From the perspective of retail categories, the sales value of jewelry, watches, and precious gifts has experienced the most severe decline, with a decrease of 43.5%, a decrease of 33.4% in pharmaceuticals and cosmetics, a decrease of 32.9% in department store goods, and a decrease of 31.9% in clothing. In addition, the sales value of electrical appliances and other unclassified durable consumer goods decreased by 18.6%, food, alcoholic beverages, and tobacco decreased by 11%, traditional Chinese medicine decreased by 23.4%, and eyewear stores decreased by 27.9%.

Nandu reporter learned that this is the 10th consecutive month of decline in the total sales value of Hong Kong's retail industry since February 2019. Looking back at the retail industry data in Hong Kong for the first 11 months of 2019, it is shown that the total sales value of the retail industry in Hong Kong had a strong year-on-year increase of 7.1% in January 2019. However, in February, there was a year-on-year decrease of 10.1%, followed by a slight decrease in units from February to June.

However, since the legislative turmoil, the total sales value of Hong Kong's retail industry has experienced a double-digit sharp decline. From July to October 2019, the total sales value of the retail industry decreased by 11.4%, 23%, 18.3%, and 24.3%, respectively. Among them, the temporary valuation of the total sales value of the retail industry in August was only 29.4 billion yuan, the lowest total value in an 11 month period. In October 2019, it recorded the largest monthly decline on record.

On December 29, 2019, the Hong Kong Chief Secretary for Administration, Cheung Chien chung, stated in a statement on the official website of the Hong Kong Special Administrative Region Government that the Hong Kong economy entered a recession in the third quarter of 2019, with a projected annual economic contraction of 1.3%, the first negative growth in 10 years. He commented that the amendment scandal "has made Hong Kong face the most severe and complex situation in the 22 years since its return to the motherland".

In response to the latest situation in the retail industry in Hong Kong in November, the Hong Kong SAR government stated that retail sales continued to decline significantly in November due to local social events becoming extremely violent, seriously disrupting tourism and consumption, and further cracking down on the consumer atmosphere. The short-term prospects of the retail industry depend on the development of local social events, therefore, stopping violence and restoring social order are crucial for the overall economic recovery of the retail industry

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Hong Kong's retail industry has plummeted, with performance falling for 10 consecutive months! Jewelry and watch sales fell by over 40% in November