In this Feb 22, 2021 photo, a man pushes a box containing a washing machine along a street in Hong Kong. (ANTHONY WALLACE / AFP)

HONG KONG - Hong Kong retail is expected to bounce back alongside the economy’s recovery later in 2021, given the effectiveness of the vaccination program, a government spokesman said on Wednesday.

A provisional estimate of the value of the seasonal retail sales climbed 1.5% for the three months ending January 2021 year on year

“If the COVID-19 Vaccination Programme yields the intended results, it should help lay a firm foundation for the revival of the retail sector and a broader-based recovery of the economy later in the year,” the spokesman said. However, in the near term, the retail business environment will still be difficult given the lack of inbound tourism and the ongoing health crisis, the official warned. 

Provisional figures for January released by the Census and Statistics Department on Wednesday showed a decline for the 24th consecutive month as a result of the fourth wave of the pandemic. Retail sales for the month fell 13.6 percent year on year to HK$32.6 billion (US$4.2 billion) compared with January 2020. Sales in December decreased by 13.3 percent year on year.

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The difference in the Lunar New Year timing should be considered in assessing the retail performance, the spokesman said, adding that, “The figure for January was conceivably distorted by the difference in timing of the Lunar New Year, which fell in mid-February this year but late January last year.” It would be more meaningful to assess the retail performance by combining the January and February sales figures, the official said.

A provisional estimate of the value of the seasonal retail sales climbed 1.5 percent for the three months ending January 2021 year on year. Electrical goods’ sales surged nearly 30 percent in January over a year earlier, followed by sales of motor vehicles and furniture.

“Categories such as convenience stores, electrical goods, furniture and telecoms are showing stronger signs of recovery from the impact of the pandemic (compared to sectors such as department stores and apparel sales),” said Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association.

Tse said most businesses cross the city differ on how much support the HK$5,000 consumption vouchers announced in the budget by Financial Secretary Paul Chan Mo-po will offer. “The majority in the catering, supermarket, convenient store and furniture shops are positive about the vouchers because they believe their businesses could benefit from the spending while those in luxury, glasses, apparel, personal care products and health supplements’ segment are less confident,” Tse said.

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Chan said the vouchers for residents and new arrivals can be used in five instalments to boost local spending. Registration is expected to begin in the summer. “The scope of the vouchers will be as wide as possible so residents can spend it according to their own circumstances,” Chan said on Tuesday, adding that it’s important to support the retail and restaurant industries to help accelerate the recovery.