Local retail sales recorded a drop of 5.1 percent year-on-year in June
Hong Kong, August 1, 2016 – Local retail sales in June contracted by 5.1 percent year-on-year according to the latest Mastercard SpendingPulse™ Hong Kong Report. While the Tuen Ng Festival in the first half of June helped retail sales, poor weather dampened its impact. The report showed that retail sales have shrunk in the first half this year as compared to the same period in 2015. Inititally, the demand from local citizens was able to offset the slowdown in spending from Mainland China, this has not been the case lately though. The contraction in both domestic and tourism spending has exerted immense downward pressure on overall sales growth rates.
The grocery sector regained momentum, springing back into positive growth territories, displaying a solid sales boost in June. The health and beauty sector showed some signs of vitality as it posted positive growth in June. Jewellery sales, which is heavily dependent upon tourist spending, showed persistent decline, while clothing sales remained sluggish. The furniture sector also remained in doldrums as a result of the housing market slowdown.
“Hong Kong retail sales have been depressed since the middle of 2014. This is being driven by the incessant slowdown in spending from Mainland China,” said Sarah Quinlan, senior vice president, Market Insights for Mastercard Advisors.
“We continue to see spending contractions in June as both domestic and international consumers held back their discretionary purchases. Looking forward, it appears that consumer spending in Hong Kong will remain weak until the decline in tourism is reversed.”
Analyzing local retail performance and spending, the macroeconomic report uses aggregated and anonymous transaction data, along with all other payment forms including cash, to offer insight into consumer spending trends, providing an early overview of market indices to help retailers, investors, card issuers, banks and government agencies in their decision-making processes.
Launched by Mastercard Advisors, a unit of Mastercard, the SpendingPulse report is available to subscribers the third week of every month and shares quality insights on consumer spending. The monthly report also includes an overall retail sales and price index, so that subscribers can understand whether spending growth is truly being driven by increased shopping or by inflation or increased promotions.
SpendingPulse is currently available to subscribers in Australia, Brazil, Canada, Hong Kong, Japan, the United Kingdom, and the United States, and is delivered ahead of retail spending figures provided by other sources. It is one of the most quoted reports on macroeconomic trends in the US and is often used as a source of reference by major international news outlets.
SpendingPulse™ Hong Kong Methodology
Mastercard analyzes the transactions processed by the Mastercard Hong Kong payments network and uses statistical models which take into account the trends of other payment methods (cash) to produce accurate and efficient reports. SpendingPulse Hong Kong is based on a robust data sample drawn from all businesses accredited by Mastercard in Hong Kong plus other additional data sources.
About Mastercard SpendingPulse™
Launched in 2006 by Mastercard Advisors, Mastercard SpendingPulse is a macroeconomic indicator that reports on national retail spending and performance. The report is based on aggregate sales activity on Mastercard cards, coupled with estimates for all other payment forms, including cash. Mastercard SpendingPulse reports and content, including estimated forecasts of spending trends, do not in any way contain, reflect or relate to actual Mastercard operational or financial performance, or specific payment-card-issuer data.
About Mastercard Advisors
Mastercard Advisors, a division of Mastercard, provides clients around the world with insights and solutions that drive business impact and ROI. The company uses advanced analytics and deep payments expertise to translate data into actionable behavioral insights and customized services. With more than 43 billion anonymized transactions processed annually in 210 countries worldwide, the company leverages aggregated information and a consultative approach to help financial institutions, merchants, media companies, governments and other organizations of all sizes grow their businesses. For more information, go to http://www.Mastercardadvisors.com/.
Mastercard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MastercardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.
Gloria Lai (852) 2533 9983, email@example.com
Denize Chan, (852) 2533 9988, Dchan@webershandwick.com
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