Financial news
Written by: Yue Yueting
2019-12-02 19:12
Last updated: 2019-12-02 19:13The value of Hong Kong's retail sales in October plummeted by 24.3% year-on-year, the largest decline in history. Chairman of the Retail Management Association Xie Qiu Anyi said that the decline in retail sales in October was larger than that in August, which was expected. Due to the base effect, and the Eleven Golden Week is the traditional peak season, so even if the value of sales in September and October changes Not much, but the decline in retail sales expanded in October.
Future market conditions still need to be observed, the number of visitors to Hong Kong is not expected to improve
In the past one to two weeks, the association interviewed members' opinions. Among them, the jewelry, clocks and precious gifts, and auto parts industry predicted that sales in November would fall by 40% to 60%; drugs and cosmetics, clothing, glasses and footwear Other industries expect sales to decline by 20% to 40%; supermarkets and convenience stores are expected to record increases.
Xie Qiu Anyi believes that the society has been relatively calm in the past week, which has led members to infer that the decline in sales data in December is expected to narrow, but there was another turbulence yesterday. I believe that future market conditions need to be observed. December is the traditional peak season. If social events do not flatten out, there is a chance that the decline will not end. If the market conditions calm down, local consumer sentiment is expected to improve, but tourists should not have much improvement, leading to a decline in December. Will be similar or "somewhat less" to October.
Some landlords provide rent reduction for tenants. Xie Qiu Anyi revealed that individual landlords will reduce rents from July to October, but it is unknown whether landlords will continue to reduce rents. However, few malls will reduce rents substantially, and landlords and real estate developers can continue to provide assistance to the industry. Mitigation measures. . (Photo by Huang Shuhui)
Full year retail sales expected to record low double-digit decline
The value of total retail sales in Hong Kong in the first ten months of this year is estimated to have fallen by 9%. Xie Qiu Anyi said that affected by the Sino-US trade war and the global economic slowdown, retail sales in the first half of this year have begun to decline slightly, with an average drop of 17% in June to October. She predicts that a double-digit drop will be recorded throughout the year. The decline will continue next year. When it will stop falling will depend on when the society is calm and when consumer sentiment is picking up. It takes at least six months for tourists to regain confidence.
Social events have severely disrupted the retail market. Xie Qiu Anyi revealed that more and more companies are taking unpaid leave for their employees, and some companies will reduce their headcount (total number of employees). Only a few companies will lay off employees and reduce their pay. She said that if social events continue, it is estimated that there will be a wave of closures in the retail and catering industries. She hopes that owners and large real estate developers can expand the coverage and extent of rent reduction and continue to provide rent relief measures to cope with the difficulties of the industry.
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