Hong Kong Retail Sales Surge 6.9% in October Fueling Optimism

Hong Kong's retail sector demonstrated robust recovery in October, with the value of retail sales rising by a notable 6.9% compared to the same period last year. This marks the sixth consecutive month of gains, signaling gathering strength in the retail market as most broad retail outlet types continued to experience growth. The total sales for October reached HK$35.2 billion (approximately $4.52 billion), an acceleration from the revised 6% year-on-year increase recorded in September.

In terms of volume, October's retail sales also saw a healthy increase of 5.3% from a year earlier, building on the 4.8% rise observed in September. Despite this recent momentum, the cumulative performance for the first ten months of 2025 indicates that the value of total retail sales remained at a similar level compared to the previous year, while the overall volume experienced a slight decline of 1.5% during the same period.

Looking ahead, a government spokesperson expressed optimism for continued support to retail businesses. This positive outlook is primarily driven by the ongoing improvement in local consumer sentiment and the sustained significant growth in visitor arrivals, both of which are expected to contribute to a resilient retail environment.

Supporting this optimistic forecast, data from the Hong Kong Tourism Board revealed a substantial surge in visitor arrivals during October, reaching 4.59 million. This figure represents a 12.2% increase from the same month a year earlier. Mainland Chinese visitors played a crucial role in this growth, accounting for 3.45 million of these arrivals, which is a 10% increase year-on-year.

Performance across specific retail categories varied, with luxury goods leading the charge. Sales of jewellery, watches, clocks, and valuable gifts recorded a strong 9.5% year-on-year increase in October, following a revised 10.3% rise in September. Meanwhile, the clothing, footwear, and allied products sector saw a modest recovery, rising by 0.9% year-on-year in October, a significant turnaround from the revised 6.6% drop experienced in September.