HK retail sales growth in June falls short of expectations

Hong Kong's retail sales have risen 0.7% YoY to reach HK$30.1 billion in June, marking an increase for the second consecutive month, but the growth rate slowed and fell short of market expectations.

According to the latest statistics released by the Census and Statistics Department, the revised estimate of the value of total retail sales in May 2025 increased by 2.4% compared with a year earlier. For the first half of 2025, it was provisionally estimated that the value of total retail sales decreased by 3.3% compared with the same period in 2024.

Of the total retail sales value in June 2025, online sales accounted for 8.5%. The value of online retail sales in that month, provisionally estimated at HK$2.5 billion, increased by 8.4% compared with the same month in 2024. The revised estimate of online retail sales in May 2025 decreased by 1.2% compared with a year earlier. For the first half of 2025, it was provisionally estimated that the value of online retail sales decreased by 0.4% compared with the same period in 2024.

Analysed by broad type of retail outlet in descending order of the provisional estimate of the value of sales and comparing June 2025 with June 2024, the value of sales of jewellery, watches and clocks, and valuable gifts increased by 6.8%. This was followed by sales of other consumer goods not elsewhere classified (+7.2% in value); commodities in supermarkets (+0.4%); medicines and cosmetics (+6.0%); commodities in department stores (+5.7%); and optical shops (+1.0%).

On the other hand, the value of sales of wearing apparel decreased by 4.3% in June 2025 over a year earlier. This was followed by sales of food, alcoholic drinks and tobacco (-1.5% in value); electrical goods and other consumer durable goods not elsewhere classified (-9.3%); motor vehicles and parts (-6.0%); fuels (-8.7%); furniture and fixtures (-16.3%); footwear, allied products and other clothing accessories (-7.2%); Chinese drugs and herbs (-2.0%); and books, newspapers, stationery and gifts (-4.7%).

Based on the seasonally adjusted series, the provisional estimate of the value of total retail sales increased by 0.3% in the second quarter of 2025 compared with the preceding quarter, while the provisional estimate of the volume of total retail sales increased by 2.7%.

A government spokesman said that retail sales showed signs of stabilisation in recent months. The value of total retail sales increased further by 0.7% in June 2025 over the year.

Looking ahead, the spokesman added continued increase in employment earnings, buoyant local stock market, coupled with the Government's proactive efforts in promoting tourism and mega events and also enterprises' strenuous effort in providing more diversified experiences would provide support to the consumption sentiment in the domestic market and businesses of the retail sector.

Bond Law, executive director of Hong Kong Retail Management Association, said during an online press conference that, despite experiencing multiple positive factors over the past year, including the central government's relaxation of visa policies for Shenzhen residents, the government's economic stimulus measures, and major sporting events and concerts attracting more visitors, June's YoY growth remained a mere 0.7%.

"Essentially, this figure is almost flat compared to last year's low base," Law said. "It’s not a significant increase by any measure."

Don't miss: HK retail sales rebound after 14-month slump

Hong Kong’s retail sales in May saw improvement with the total sales value reaching HK$31.3 billion, ending a 14-month decline. According to the government statistics, the value of total retail sales in May 2025, provisionally estimated at HK$31.3 billion, increased by 2.4% compared with the same month in 2024. After netting out the effect of price changes over the same period, the provisional estimate of the volume of total retail sales in May 2025 increased by 1.9% compared with a year earlier. 

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