Hong Kong Luxury Sales Fall in February

RAPAPORT... Retail sales of jewelry and other luxury items declined inHong Kong in February, impacted by weakened consumer sentiment and the timingof the Lunar New Year. Revenue from jewelry, watch, clocks and other valuable giftsfell 10% year on year to HKD 7.25 billion ($923.1 million) for the month, the municipality'sCensus and Statistics Department reported Monday. Sales in all retailcategories dropped 10% to HKD 40.67 billion ($5.18 billion). Sales figures for luxury goods tend to be more unstableduring the first two months of the year due to the timing of the Lunar NewYear, as consumers tend to shop prior to the festival, a governmentspokesperson said. This year, the holiday fell on February 5, as opposed toFebruary 16 last year, meaning more shopping would have been done in January thisyear. Economic uncertainty also affected spending, according to the government. "The weak performance of retail sales in recent monthsreflected that [consumer] sentiment remained cautious amid various externaluncertainties," the spokesperson added, noting that global pressure wouldcontinue to affect retail sales in the near term. However, the improvedemployment situation and growth in inbound tourism will help provide support,he explained. Tourist arrivals in Hong Kong rose 6% to 5.6 million in February, the Hong Kong Tourism Board reported. Of those, 4.6 million came from mainland China. In the first two months of the year, sales of jewelry,watches, clocks and other valuable gifts slid 2.8% to HKD 15.67 billion ($2billion). Image: Hong Kong harbor. (Pexels)