Hong Kong Luxury Sales Record Rare Drop

RAPAPORT... Retail sales of jewelry and other luxury items in Hong Kongdeclined for the first time in 17 months as global economic uncertainties impacted consumer sentiment.Revenues from jewelry, watches, clocks and other valuablegifts dropped 3.9% to HKD 5.88 billion ($750.8 million) in November, themunicipality's Census and Statistics Department reported Thursday. Sales in allretail categories increased 1.4%, but growth was the slowest in more than 12months. "The generally moderated growth in retail sales in recentmonths reflected more cautious consumption sentiment in the face of variousexternal uncertainties such as the US-mainland trade tensions, and volatilitiesin the global financial markets," a government spokesperson said. Hong Kong-based jewelers Chow Tai Fook and Luk Fook raised concerns in November about the impact of the US-China tariff war and thedepreciation of the Chinese yuan on the region's consumer demand. While proceeds from jewelry and other luxuryproducts jumped 16% to HKD 77.06 billion ($9.84 billion) for the first 11months of 2018, growth slowed in September and October, according to governmentfigures. The November decline matches Luk Fook's warning that its same-store sales had dropped in late October and November. Retail sentiment could suffer further due to a drop in thevalue of assets consumers own, as well as uncertainty in the global economy,the government added. A positive job market and growth in Hong Kong's touristindustry - a major source of retail spending in the municipality - shouldpartly support the sector, the spokesperson continued. Monthly sales of jewelry and other luxury products in themunicipality last fell in June 2017, when the market was recovering from aslump in tourism in 2015 and 2016. Image: A jewelry store in a Hong Kong shopping mall. (Shutterstock)