Retail sales in Hong Kong rebounded in April, buoyed by government-led consumption vouchers as well as the easing of Covid restrictions. Industry players however warn of further headwinds. 

Overall sales were up 11.7 per cent year on year, with various categories registering double-digit growth. Sales of jewellery and other valuable gifts recorded a 13.9 per cent increase to HK$3 billion (around US$382.38 million). January to April jewellery sales meanwhile saw a 13 per cent year-on-year drop to HK$10.72 billion (around US$1.37 billion).

The government said sales recovered in April after two consecutive months of decline on the back of improving Covid situation in the city and the disbursement of the first batch of consumption vouchers.

The Hong Kong Retail Management Association (HKRMA), a retail organisation with membership covering more than 9,000 local retail outlets, however said retail sales growth remains fragile as retailers continue to face challenges. 

Sales in April 2022 are down by 2 per cent from April 2019 figures, which meant the market has yet to return to normal levels, the group said, adding that amid slight improvements, the benefit from consumption vouchers is short-lived.

High rents, supply chain and logistics disruptions, resulting in soaring operating costs, coupled with rising inflation and interest rates could cause fluctuations in Hong Kong exchange rates and turmoil in the Hong Kong stock market. This in turn could weaken the market’s buying power, HKRMA said.