Hong Kong retailers, jewellers included, recorded a double-digit decline in May sales due to changing consumption patterns alongside the strength of the Hong Kong dollar.

According to the city's Census and Statistics Department, sales of jewellery, watches and clocks, and other valuable gifts dipped 21.4 per cent year on year to HK$4 billion (around US$511.61 million) during the month in review. January to May figures were down 10.6 per cent to HK$22.23 billion (about US$2.84 billion).

Meanwhile, overall retail sales, including other top consumer goods, dropped 11.5 per cent to HK$30.5 billion (approximately US$3.91 billion).

The Hong Kong government attributed the decline to changes in consumption patterns of both visitors and residents. Other factors such as the strength of the Hong Kong dollar and a relatively high base of comparison from 2023 also contributed to the downturn.

Online retail sales, meanwhile, rose over 20 per cent year on year in May while the share of online sales in total retail sales value has been steadily rising in recent months. This trend points to new opportunities for retailers by adapting to shifting spending patterns through new sales models and exploring new businesses.

“The retail sector may still face some challenges in the near term,” said the government, adding that recent measures including an enhanced Individual Visit Scheme and a higher duty-free shopping allowance for mainland tourists returning from Hong Kong and Macau could stimulate retail businesses.