newsonretail.com - August Boom in Retail Industry in Hong Kong

August Boom in Retail Industry in Hong Kong

Friday, 26 October 2007

The retail industry in Hong Kong has more reasons to jubilate, as growth continues unabated, thanks to a number of factors, like the high tourist inflow and domestic spending, and improved employment.

As per the Census and Statistics Department, there was a 12.5% year-on-year increase in the volume of retail sales in Hong Kong in August 2007, in comparison to the revised growth of over 12% in July 2007 and 15% from August 2006. RTT published this news.

Both tourist and domestic demands support the healthy growth of retail sales in Hong Kong. The 16.9 % upsurge in tourist arrivals in the city in August 2007 from the previous year marked the most significant increase for the last six months (February and August 2007). Simultaneously increasing stock prices and income hikes by employers in an attempt to woo workers also urged the Hong Kong residents to splurge on products like food, clothing and electronic goods.

Positive retail sales in August 2007 also benefited from better employment scenario in the country. Towards the end of August 2007, the unemployment rate was bordering on a nine-year low at 4%. According to the news published by Bloomberg, Manpower Inc. a temporary worker provider, had revealed in its September 11 survey showed a new record of 3.5 Million employed residents in a city of 6.9 Million.

According to Forbes, Daniel Chan, Senior Investment Strategist at DBS Bank in Hong Kong, stated, “The trend of higher retail sales will continue in coming months, especially in the last quarter of 2007 because of the Christmas season”. His view has been backed by the Standard Chartered Bank due to the assumption that double-digit growth for Hong Kong sales in value terms are realistic enough, given the glowing prospects of domestic demand and tourist spending.

A research analyst at RNCOS reinforces the fact that “Hong Kong remains one of the most developed global cities. Each day, the retail industry is growing, as extreme lifestyles of the residents favor it. Retailers are cashing in on the spending habits of the consumers. The expectation that Hong Kong’s economy will continue to remain healthy also helps in maintaining the high levels of consumer confidence for their spending. And with Christmas around the corner, retailers have every reason to celebrate”.

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