Hong Kong’s retail sector extended its recovery in February, with sales posting strong growth amid resilient momentum in the local economy and a spike in visitor arrivals.

The value of total retail sales increased by 19.3 percent on a yearly basis to HK$35 billion ($4.47 billion) in February, according to data released by the Census and Statistics Department on Wednesday. The growth accelerated from a revised 5.5-percent year-on-year increase in January.

Online sales accounted for 8.5 percent of total retail sales during February. The provisional estimate of online retail sales rose 29 percent from a year earlier to HK$3 billion.

A government spokesperson said that after combining the figures for January and February to offset the effect of the different date of this year’s Chinese New Year compared with 2025, the value of total retail sales increased “visibly” by 11.8 percent over a year earlier. Sales of most major retail categories recorded gains.

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Looking ahead, “the resilient growth momentum in the local economy and the vibrant increase in inbound visitors are expected to support retail businesses”, the spokesperson said.

The Hong Kong Special Administrative Region government will closely monitor geopolitical developments and assess their potential implications on local consumption, the spokesperson added.

Hong Kong recorded 14.3 million visitor arrivals in the first quarter of the year, a 17 percent increase compared with the same period last year, Secretary for Culture, Sports and Tourism Rosanna Law Shuk-pui said on Wednesday.

Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association, said consumer sentiment has indeed improved, although the strong February growth was partly due to a low base of comparison with last year.

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According to the association’s latest monthly survey, covering about 3,000 stores and 67,000 employees, more than half of retailers expect sales to increase in March. About 30 percent anticipate a decline amid concern that the impact of the Middle East conflict on capital markets could dampen consumer confidence.

Retailers are also cautious about the upcoming Qingming Festival and Easter holidays, which will run consecutively from Friday through Tuesday this year. More than 70 percent of respondents expect sales during the period to fall by a single-digit to low double-digit percentage, as many residents are expected to travel out of Hong Kong.

While Chinese mainland visitors may travel to the city during the Qingming Festival holiday from Saturday through Monday, they are more likely to opt for day trips rather than overnight stays, given the relatively short break, making it difficult to offset the impact of outbound travels by Hong Kong residents, Tse said.

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Some stores have stepped up promotions, including coupons, to encourage consumers to buy travel essentials before departing, she added.

A study conducted by consultancy Roland Berger in late 2025 highlighted Hong Kong’s broader consumption habits and trends, finding that “the market’s highly urbanized structure places a premium on convenience and proximity in offline retail, alongside seamless navigation and speed in online channels”. Convenience stores and pharmacy chains have consequently emerged as dominant touchpoints for daily spending.

Meanwhile, Hong Kong consumers continue to prioritize quality and experience. Shopping malls and flagship stores are increasingly leveraging pop-ups, art installations and technology-enabled features to attract customers. The report said that 70 percent of respondents still value the in-store experience, and half prefer a mix of offline and online shopping.

Luxury clothing, jewelry and cosmetics remain resilient as status symbols in the city. About 35 percent of surveyed consumers said they will consider trading up to luxury brands as income rises, compared with 29 percent across Asia.

Contact the writer at irisli@chinadailyhk.com