Xie Qiuanyi: It is expected that Hong Kong's retail sales decline in March and April will narrow or slightly increase, but the market slump will continue.

The Census and Statistics Department of the Hong Kong Special Administrative Region government announced that the total value of retail sales in Hong Kong in February this year was temporarily estimated at 29.4 billion Hong Kong dollars, a year-on-year decrease of 13%, far exceeding the market's expectation of 5.7%. This decline also widened significantly from the 3.1% drop in January, marking the 12th consecutive month of decrease. The Chairperson of the Retail Management Association, Annie Shek Yau-yee, stated that the data for the first two months continued the decline from last year, and the overall market environment showed no signs of improvement. However, she emphasized that with the low base effect in March and April, the decline in retail sales is expected to narrow or slightly increase year-on-year. Nevertheless, the sluggish retail market environment is expected to persist for a longer period of time. Regarding the retail performance in March of this year, Annie Shek Yau-yee mentioned that the low base effect caused by Easter falling later last year, increased promotional efforts by businesses, and various events driving passenger flow growth have benefited low-priced goods. According to a survey by the association, 50% of respondents believe that business in March remained steady or slightly increased year-on-year, describing it as a significant improvement compared to before. Convenience stores, cosmetics, and supermarkets saw single-digit increases. Regarding the recent accelerated entry of mainland e-commerce platforms into Hong Kong, Annie Shek Yau-yee stated that while this will indeed impact the retail industry in Hong Kong, it cannot be stopped. The industry hopes to discuss with the government how to regulate the quality of products sold on these e-commerce platforms, as well as how to reduce the costs for local retail businesses to enhance competitiveness. She also pointed out that association members have indicated that there is still room for rent reductions in current contract renewals.