Retail sales in Hong Kong tumbled 15% year-on-year in February 2025, deepening from a downwardly revised 5.1% drop in January.
Hong Kong retail sales slump in February
This marked the twelfth consecutive month of declining retail activity and the steepest contraction since April 2024, as sales weakened across all major product categories. The sharp decline was attributed to subdued consumer sentiment, shifting consumption patterns, and ongoing economic uncertainties that have weighed on both domestic and tourist spending.
Sales fell across the board, with significant declines in food, alcoholic drinks, and tobacco (-11.2% vs. +7.3% in January), supermarkets (-18.9% vs. -1.1%), and fuels (-12.6% vs. -1.5%). Discretionary spending was also hit hard, with clothing and footwear sales plunging 14.2% (vs. +4.1%), department store sales tumbling 22.9% (vs. -1.3%), and other consumer goods sales falling 12% (vs. +1.9%). The luxury market remained under pressure, as sales of jewellery, watches, clocks, and valuable gifts declined 16.6%, though at a slower pace than January’s 20.7% drop. Similarly, consumer durable goods sales contracted 16.5%, improving slightly from the 24.2% slump in the previous month.
Month-over-month change
On a month-over-month basis, retail sales plummeted 17.3% in February, wiping out the strong, upwardly revised 8.2% gain recorded in January. This sharp reversal suggests that any prior boost—potentially from holiday-related spending—was short-lived, with February’s data reflecting persistent structural challenges in Hong Kong’s retail sector.
A government spokesperson acknowledged the continued difficulties faced by retailers, highlighting that shifts in consumer behavior among both residents and tourists have contributed to the prolonged downturn. With visitor arrivals yet to return to pre-pandemic levels and local consumers exhibiting greater caution in their spending, analysts expect that the sector may remain under pressure in the near term. Moving forward, market watchers will closely monitor consumer confidence, tourism recovery, and potential policy support measures that could help stabilize retail activity in Hong Kong.
