Hong Kong February retail sales value up 8.6%

Yet the recent Japan crisis could generate adverse impact on the business of certain retailers.

The value of total retail sales in February is provisionally estimated at $29.2 billion, up 8.6% on a year earlier.

According to figures released by the Census & Statistics Department on Thursday, after netting out the effect of price changes over the same period, the volume of total retail sales rose 5.1% compared with the same month last year.

The revised estimate of the value of total retail sales in January was $37.6 billion which was up 28.1% year on year, while the volume of total retail sales increased 23.6%.

The department said retail sales tend to show greater volatility in the first two months of a year due to the Lunar New Year holiday. As the Lunar New Year fell on February 3 this year but on February 14 last year, it is more appropriate to analyse the retail sales figures for January and February taken together.

Taking the first two months of this year together, total retail sales grew 18.8% in value, or 14.7% in volume, over the same period last year.

Taking January and February together, the volume of sales of miscellaneous consumer durable goods was up 99.9% over the same period last year, followed by sales of jewellery, watches and clocks, and valuable gifts (+29.7% in volume); electrical goods and photographic equipment (+20.4%); footwear, allied products and other clothing accessories (+20.2%).

The department said improving job and income prospects should bode well for consumer confidence. This should continue to support retail business, coupled with the further growth of inbound tourism.

However, there could be some impact on the business of certain retailers arising from the recent crisis in Japan. The impact on overall retail sales, if any, will be reflected in the figures in the coming months.