While Hong Kong’s retail sales soared in February, the sector is still hurting from the pandemic and the performance doesn’t indicate a comeback, the head of the city’s retail association said on Tuesday.

“It’s just because of the lower base last year,” said Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association. “We are still suffering and the market is far from recovery.”

The jump reflected “the distortion caused by the difference in timing of the Chinese New Year as well as an exceptionally low base of comparison early last year due to the COVID-19 outbreak,” said a government spokesman

Retail sales in February surged by 30 percent year on year, ending 24 straight months of decline, due to the difference in timing of Chinese New Year and a lower base from last year, the Census and Statistics Department said in a statement on Tuesday.

The jump reflected “the distortion caused by the difference in timing of the Chinese New Year as well as an exceptionally low base of comparison early last year due to the COVID-19 outbreak,” a government spokesman said in the statement. “For the first two months of 2021 combined, retail sales volume registered a slight increase over a year earlier.” 

READ MORE: Sogo operator pessimistic about HK's retail market in 2021

The provisionally estimated total value of retail sales for the first two months of this year climbed 2.7 percent compared with the same period in 2020. The release said it’s more appropriate to analyze figures for the two months taken together in making a year-on-year comparison. 

“Retail sales tend to show greater volatility in the first two months of a year due to the timing of the Chinese New Year,” the statement said. “Consumer spending in the local market normally attains a seasonal high before the Festival.”

The retail association forecast similar sales growth in March and in the following months. However, “It’s purely due to the low figures last year”, Tse reiterated. Tse said half the retailers interviewed by the association said they will shut stores in the third quarter compared to 20 percent in the previous quarter, “mostly in the tourist (shopping) area.”

ALSO READ: HK Jan retail sales down 13.6%, sector eyes 2021 rebound

Categories such as household and daily necessities will see a stronger rebound from the pandemic-battered economy while the jewelry, watches and cosmetics sector will continue bearing the brunt amid the travel shopping limbo, said Tse. “As long as the border is closed, these sectors will be suffering.”

Online merchandizing has skyrocketed in Hong Kong, with the value of online retail sales jumping 56.5 percent in February compared with the same month last year, following a 91.3 percent year-on-year increase in January. Data on online retail sales have been collected through the Monthly Survey of Retail Sales (MRS) since January 2020.

Tse forecasts online retailing to further prosper as shoppers have adopted new habits of online purchasing as a result of the pandemic. “Online channels will be more prevalent and retailers have to transform themselves to take advantage of the opportunity,” she said.