Retail in Asia

In Markets

Report: Hong Kong retail 1Q10

CB Richard Ellis has released its Hong Kong Retail report for the first quarter of 2010.

According to the report, the total value of retail sales in Hong Kong surged 35.8 percent year on year in February. Combining January and February figures to account for the impact of the Lunar New Year holiday, the total value of retail sales increased 18.8 percent year on year. Sales of motor vehicles jumped 57.5 percent year on year over the period, while sales of other durable goods followed with growth of 40.2 percent. The rebound in these two categories, which are mainly purchased by local consumers, may be due to the low base of early 2009 when consumers cut back on spending due to the uncertain economic outlook. When compared with the same period of 2008, the above two items increased 1.6 percent and 21.1 percent respectively. Nonetheless, the resurgent growth indicates that local consumer confidence has improved considerably over the past year.

The rebound in retail sales was also helped by mainland Chinese tourists spending their Lunar New Year holiday in Hong Kong. Total visitor arrivals increased 32.5 percent year on year in February, with tourists from mainland China increasing almost 50 percent year on year. The impact of the surge in mainland Chinese tourists can also been seen from rising sales of watches and jewellery, cosmetics, and electrical goods, all of which recorded double-digit growth during the first two months of the year, with watches and jewellery recording an annual increase in sales of 30 percent.

To view the full report, visit CB Richard Ellis.