Hong Kong Retail Sales Continue Rebound
Hong Kong's retail sector is showing sustained momentum, with sales rising 5.5% year-on-year in January. The growth reflects a rebound in both tourism and local consumption, serving as a positive bellwether for the region's broader consumer demand.
The January performance represents the ninth consecutive month of retail growth, with total sales value reaching HK$37.3 billion (US$4.77 billion). This follows a 6.6% year-on-year gain recorded in December 2025. Luxury goods and big-ticket items were major drivers of the increase. Sales of jewellery, watches, clocks, and valuable gifts surged by 31.1%, while electrical goods and other consumer durables jumped 38.7%. The growth was not uniform across all sectors. Sales in supermarkets fell by 5%, department stores saw an 11.1% decline, and sales of footwear and clothing accessories dropped by 19.9%. The retail uptick is closely linked to visitor numbers, which reached 4.81 million in January. Arrivals from mainland China accounted for 76% of the total, while the number of non-mainland visitors saw a significant 15% increase compared to the previous year. Online retail sales also showed strong momentum, climbing 25.1% year-on-year to HK$3 billion. This digital segment now accounts for 8.1% of the total retail sales value in the city. It is important to note the timing of the Lunar New Year can affect year-on-year comparisons. The holiday fell in January in 2025 but in February in 2026, which may have shifted some consumer spending patterns. Looking ahead, analysts at Deloitte are forecasting that Hong Kong's retail sales will grow by up to 8% for the full year in 2026. The government aims to support this trend, with the Hong Kong Tourism Board allocated HK$1.66 billion to attract more visitors and host large-scale events.
