Hong Kong’s retail performance continued to contract in April as retail sales declined by 5.7 percent year-on-year, the latest MasterCard SpendingPulse Hong Kong Report revealed.
“Continuous slowdown in spending from Mainland China, along with stubborn deflation, has led to the unrelenting depressed state of Hong Kong retail since the middle of 2014,” said Sarah Quinlan, senior vice president, Market Insights for MasterCard Advisors.
“Deflation has continued as retailers offer discounts in order to stimulate sales. We expect this contraction to continue as the macroeconomic factors which would increase consumer confidence and spur domestic spending have not yet turned positive,” she added.
The report noted that while there was spending boost during the Labor Day Golden Week, it was not enough to reverse the fortunes of the region, which also suffered from declining Chinese tourism and subdued local spending.
Clothing and jewelry sales in April continued to drop, while health and beauty and furniture sales posted soft recovery. The grocery sector remained positive – as it has for three consecutive months – but its growth rates cooled off significantly in April.
(Source: Enterprise innovation )