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Friday, August 02, 2019, 09:35
Tough times for retailers as violent protests go on
By Edith Lu
Friday, August 02, 2019, 09:35 By Edith Lu

People visit the 44th Hong Kong Toys and Games Fair in Hong Kong, south China, Jan. 8, 2018. (WANG XI / XINHUA)

Hong Kong’s retail sales plunged 6.7 percent in June year-on-year, falling for the fifth straight month, amid the ongoing anti-extradition bill protests that have hurt consumer sentiment. 

“Having five weekends in June, the retail sector’s performance was supposed to be better compared with the same period in 2018,” said Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association. 

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For the first half of 2019, it was estimated that the value of retail sales fell 2.6 percent compared with the same period the previous year

But, with the protests erupting almost every weekend since the second week in June, the retail business has been thrust into a diffcult position, she said. 

Tse reckoned that the negative impact from the demonstrations on the retail sector has been even worse than that during the “Occupy Central” movement in 2014 as the ongoing protests have spread out all over Hong Kong rather than confined to a particular location. 

A government spokesman said if the demonstrations persist, the retail business industry is bound to be further hit. The SAR government will continue to monitor the situation.

For the first half of 2019, it was estimated that the value of retail sales fell 2.6 percent compared with the same period the previous year. 

Sales of most categories saw declines. The plunge in the value of luxury gifts, including jewelry, watches and clocks, reached 17.1 percent, the sharpest. Only the value of sales of commodities in supermarkets rose 1.6 percent. 

The spokesman predicted that local retail sales are likely to remain subdued in the near term. 

Tse reiterated her forecasts of a double- digit decline for the retail business this year. 

Hong Kong received 5.14 million tourists in June - down 13 percent from a month earlier. The bulk of the visitors were from the Chinese mainland, accounting for about 70 percent of the total number of tourist arrivals. But the number of mainland tourists dwindled by 3.6 percent and 2.5 percent in the third and fourth week of June, respectively, after large-scale protests broke out. 

Tse said retailers are adopting a cautious attitude and watching developments closely, warning that job cuts would be inevitable if the situation worsens.

“Retailers are planning to cancel some temporary counters and events such as pop-up stores. But we’re not aware of any of them intending to reduce the number of outlets,” Tse added. 

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However, retailers’ plans to open new outlets have been postponed or suspended. Tse suggested that those with problems paying their rents should discuss it with landlords to get through this diffcult period. 

She urged the government to talk to retailers to better understand their difficulties and needs.

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