Data released by the Census and Statistics Department on Monday showed that turnover of the city’s total retail sales was provisionally estimated to be HK$29.4 billion.
That was significantly lower compared with HK$35.4 billion registered in January when sales dropped by 3.1 percent on a yearly basis.
Taking the first two months of the year together, the value retail sales were estimated to have decreased by 7.8 percent from a year earlier.
The volume of retail sales also notably declined, dropping by 15 percent, compared with the 5.1 percent retreat seen in January.
For the first two months of the year, the total volume declined by 9.9 percent on a yearly basis.
Commenting on the figures, a government spokesperson said the steep declines were partly due to the different timing of the Lunar New Year holiday, which fell in late January this year but in February last year.
“Consumer spending in the local market normally attains a seasonal high before the festival,” a government statement reads.
The spokesperson noted that when retail sales for the first two months of the year were bunched together, which could remove such a holiday effect, the decline was smaller compared with the drop in December.
Looking ahead, the spokesperson acknowledged the challenges ahead but said various measures by the central and the SAR governments will offer support.
“The SAR government’s proactive efforts to promote tourism and mega events, and the sustained increases in employment earnings in local labour market, would benefit the retail sector, though it would continue to face challenges from the change in consumption patterns of visitors and residents,” the spokesperson said.
Analysed by categories, sales of motor vehicles and parts saw the most significant decline – dropping by nearly 50 percent in the first two months of the year while that of furniture and fixtures decreased by 25.6 percent.
Sales of food, alcoholic drinks and tobacco, however, rose 0.7 percent year on year, followed closely by the 0.6 percent seen for medicines and cosmetics.
