Hong Kong April retail sales fall for 14th straight month (updated)

AEON Stores Hong Kong

31/05/2016 11:06

(Adds details, comments) 
    * April sales of jewellery, watches down 16.6 pct y/y 
    * April tourists fall 2.1 pct y/y, mainland visitors down 4 
pct 
    * MasterCard's April retail sales in Hong Kong fall 5.7 pct 
 
    HONG KONG, May 31 (Reuters) - Hong Kong's retail sales fell 
for the 14th successive month in April, as a drop in tourists 
and weak local consumption deepened the pain for retailers in 
the city. 
    Retail sales in April slid 7.5 percent from a year earlier 
to HK$35.2 billion ($4.5 billion) in value terms, less than a 
9.8 percent slump in March. In volume terms, April sales dropped 
7.6 percent, government data showed on Tuesday. 
    "Many types of retail outlet still recorded notable falls in 
sales, reflecting the continued drag from the slowdown in 
inbound tourism as well as the more cautious local consumer 
sentiment amid subpar economic conditions," the government said 
in a statement. 
    Hong Kong is struggling with mounting economic challenges 
from the prospect of rising U.S. interest rates, which has 
stepped up capital outflows, and from China's economic slowdown. 
    Mainland tourists are avoiding the city amid political 
tensions with China and growing calls from radical activists for 
greater autonomy from Beijing. 
    "The near-term outlook for retail sales will continue to 
depend on the performance of inbound tourism," the government 
added. 
    Hong Kong tourist arrivals in April fell 2.1 percent from a 
year earlier to 4.69 million, after sliding 4.3 percent in 
March. Mainland visitors, which accounted for 73.8 percent of 
the total, fell 4 percent to 3.46 million in April. (http://bit.ly/1WupAMF) 
    April sales of jewellery, watches, clocks and valuable gifts 
fell 16.6 percent in value terms, a 20th consecutive month of 
decline. Department store sales slid 6.8 percent on year, while 
wearing apparel fell 5.9 percent. 
    MasterCard's  MA.N  MasterCard Advisors said its retail 
sales in Hong Kong in April contracted 5.7 percent from a year 
earlier amid declining Chinese tourism and subdued local 
spending. 
    A string of retailers from jewellery firms to cosmetics 
retailers have warned of weaker sales amid a decline in mainland 
tourists and weak consumer sentiment.  
    Chow Tai Fook Jewellery  1929.HK  and cosmetic chain Sa Sa 
International  0178.HK  had warned that their annual profit for 
the year ended in March could be half what it reported last 
year.  urn:newsml:reuters.com:*:nL2N1890F9  urn:newsml:reuters.com:*:nL3N18203N 
    General merchandise stores operator AEON Stores  0984.HK  
said they would swing into the red for the six months ending in 
June, while apparel chain Bauhaus  0483.HK  expected its net 
profit for the year ended in March to fall 70 percent. 
    ($1 = 7.7674 Hong Kong dollars) 
 
 (Reporting by Donny Kwok; Editing by Jacqueline Wong) 
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters 
Messaging: donny.kwok.reuters.com@reuters.net)) 
 
Keywords: HONGKONG ECONOMY/RETAIL