Editorial | Innovation and fresh strategy keys to lifting battered retail sector in Hong Kong
Those who manage to stay ahead when the market and consumer behaviour are changing fast stand a better chance of thriving
Continuous 2 to 3 per cent growth in the economy makes Hong Kong the envy of many in the world. It looks even more remarkable considering the city was among the hardest hit by the coronavirus pandemic just a few years ago.
Yet there is no shortage of indicators reflecting the challenges facing some local industries. The disturbing decline in retail sales is one of them.
Official data showed the city’s retail sales dipped for the 12th straight month in February, falling by 13 per cent year on year to a total value of HK$29.4 billion for the month.
The sharper-than-expected decline was attributed to the earlier arrival of Lunar New Year in late January this year, compared with mid-February last year. The total value was down by nearly 40 per cent from the same month’s peak of HK$46.55 billion in 2015.
The drop came as little surprise in the wake of a depressing downward trend over the past year. But it also shows the local economy is not as resilient as it seems.
The year-long contraction sits oddly with an expected annual growth rate of 2.5 per cent for the economy. It underlines the post-Covid shift in consumption and tourism patterns with which many retailers are still grappling.
Some lamented that retail spending remained weak despite joint promotions by the government and businesses during traditional peak seasons such as Christmas and Lunar New Year.
