HK retail sales down as mainland shoppers stay home

Hong Kong

HONG KONG retail sales posted a second straight annual decline despite sharp discounting, the Census and Statistics Department said, reflecting a sustained decrease in visitors from mainland China and the diminished buying power of a weaker yuan.

Retail sales fell 3.7 per cent to HK$475 billion (S$87 billion) last year, while volume dropped 0.3 per cent. In December, when the tourism board counted nearly 11 per cent fewer visitors, retail sales value fell 8.5 per cent from a year earlier, worse than the 4.3 per t drop projected by analysts. The slump widened from 7.8 per cent in November and was the largest since last January.