Hong Kong’s retail sales value surged by 7.1 percent year-over-year to HK$48.1 million ($6.13 million) in January, higher than market expectations, according to Knight Frank’s March Hong Kong Monthly report.
Three locally related retail categories registered double-digit growth, attributed largely to the festive atmosphere of the Chinese New Year. Seasonal variation aside, Hong Kong’s retail market has entered a “new normal”, a condition characterized by a solid sales performance, but at a lower growth rate. Unlike in earlier years when the sustained spending of Mainland visitors fueled growth, now purchases by Mainland visitors have stabilized. Retailers have turned cautious about further expansion. Also, more shopping mall landlords are willing to lease space to entertainment tenants to diversify their retail mix.
