Jewelry and fashion sales slide in Hong Kong's April retail data
Hong Kong's retail sales fell for a 14th straight month in April, government data showed on Monday, as local consumers remained cautious and visitors from mainland China spent less, although the decline was smaller than in March.
Retail sales by value fell by 2.3% in April from a year earlier to HK$28.9 billion ($3.68 billion), after a 3.5% fall in March.
In volume terms, sales slipped 3.3% from a year earlier, compared with a revised 4.7% decline in March.
While the territory saw a jump in visitors from mainland China, many came just for the day and did not spend much. In contrast, local residents spent more across the border, taking advantage of the Hong Kong dollar's relative strength against the Chinese yuan.
A Hong Kong government spokesman said 'ongoing changes in consumption patterns and competition among businesses amid the uncertain macroeconomic environment will still pose challenges' to the retail sector.
However, the spokesman added that the Hong Kong government's promotion of tourism, big events, and steady growth of the mainland economy will bolster consumer sentiment.
The data from the Hong Kong Tourism Board showed that April visitor arrivals stood at 3.85 million, up 13.5% from the same month a year ago. That compared with 3.82 million in March, 3.67 million in February, and 4.74 million in January.
Mainland Chinese visitors stood at 2.81 million in April, up 13.3% from a year ago. That compares with 2.75 million in March, 2.77 million in February, and 3.73 million in January.
Sales of jewelry, watches, clocks and valuable gifts fell 1.7% year-on-year in April after a 3.4% drop in March.
Sales of clothing, footwear and allied products declined 5.5% year-on-year in April after a 10.4% plunge in March.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Network
an hour ago
- Fashion Network
Beyoncé-worn fashion upstart Farm Rio raises prices, slows exports to US
A Brazilian fashion company known for colorful prints sported by celebrities, including Justin Bieber and Beyoncé, is selectively raising prices to cushion the impact of tariffs while scaling back exports to the US. Azzas 2154 SA, owner of the Farm Rio brand, has already increased some prices in the US and is considering shifting parts of its production to Europe from China, chief executive officer Alexandre Birman said during an interview at Bloomberg's headquarters in New York. 'We don't know where tariffs will stop, but we've temporarily slowed US-bound imports,' Birman said. Azzas, one of Brazil's largest apparel exporters, is navigating turbulence in both the US and its home market, where high interest rates have fueled concerns about demand. Globally, sales for mid-tier fashion-focused brands have largely held up, but companies have warned that the outlook for the second half is unclear. Brazil's apparel sales have remained strong so far this year, but higher tariffs could hinder Azzas' international expansion. Still, Birman sees opportunity in Brazilian footwear manufacturing as companies seek alternative sourcing countries to avoid US duties. 'If tariffs on Chinese goods rise above 50%, we become competitive,' he said. 'In that case, we'd need to accelerate investments to expand local output, as China's production quality has improved significantly in recent years.' The US hiked tariffs to as high as 145% before scaling back to 30% for 90 days as the countries worked toward an agreement. US President Donald Trump has also raised tariffs for countries across the board and threatened the EU with a levy of 50% if no deal is reached. US states and small businesses are challenging the levies at the US Court of International Trade, which had previously ruled against the tariffs. Although a federal appeals court has temporarily allowed them to remain in effect, the future of US trade policy will depend on a mix of court decisions and ongoing negotiations with foreign governments. In subsequent comments to Bloomberg, Birman said that Trump's policies are causing uncertainty. If duties continue to rise, Azzas may move apparel production to Turkey or Portugal — a shift that would also support the European rollout of its Farm Rio brand. The company currently has a limited number of stores in the region. It's also looking to expand in the Middle East, Mexico and South America. The Farm Rio brand has six stores in the US and more than 100 in Brazil. Birman said that Azzas, formed from the 2024 merger of Arezzo and Grupo Soma, has seen only a 'small impact' from tariffs so far. The Belo Horizonte, Brazil-based company is focused on accelerating synergies and improving its cash flow as it merges operations. He added that the group is streamlining operations with an eye on return on invested capital and hasn't ruled out deals related to its brands. The company also owns high-income brands including Animale, Maria Filó, Cris Barros and Fábula, among others. Birman also has a brand under his own name that sells shoes costing from $400 to $1,000. Actress Emily Blunt wore the shoes during the 2023 Oscars. Quarterly results Birman said the integration is starting to deliver results, with gains expected as the company streamlines logistics and shipping operations and combines areas such as e-commerce and customer service. Revenue rose sharply in the first quarter compared to a year earlier. Investors are watching closely for signs of progress. Ruben Couto, an analyst at Banco Santander, said in a recent note to clients that the company's negative operational cash flow and high capital expenditures contributed to higher debt last quarter. To counter this and instill financial discipline, employee bonuses are now tied to Azzas' free cash flow, Birman said. Management also plans to lower capital expenditures by 120 million reais ($21 million) next year by reducing spending on technology and opening new stores via franchisees. Birman downplayed a report from Valor Econômico, a Brazilian newspaper, that there's tension with Grupo Soma founder Roberto Jatahy. 'There are points of divergence that generate interesting debates,' Birman said of his relationship with Jatahy. He added that 'everything is governed by a valid agreement, including a 10-year lock-up plan, to uphold its terms.' Last year, the company's major shareholders agreed to a lock-up plan that restricts the sale of their stakes except in specific cases. Birman and Jatahy are major shareholders in the combined entity, and Soma generates about 30% of the revenue. Azzas' Brazil-listed stock has advanced more than 50% so far this year, with much of the jump following the company's first-quarter earnings release last month. Birman added he has a 'deep' relationship with Farm Rio's founders, Katia Barros and Marcello Bastos. 'We have a fashion connection; there's a constructive relationship with strategy to improve the business,' he said.
France 24
8 hours ago
- France 24
EVs boost German auto sales, Tesla falls again
A total of 239,297 new vehicles were registered in May in Europe's top car market, 1.2 percent more than the same month last year, the KBA federal transport authority said. The number of electric vehicles (EVs) registered jumped 45 percent, as the segment continues a tentative recovery following a downturn last year triggered by the removal of government subsidies. This offset declines for petrol and diesel vehicle sales. But electric car maker Tesla, which has suffered across Europe due to anger that Musk played a role as a key advisor to US President Donald Trump, saw its sales slide again, this time by 36 percent. The US billionaire has faced particular hostility in Germany for backing the far-right Alternative for Germany (AfD) before February's general election. Musk left his role as an advisor to Trump last week, although it is not yet clear what impact this could have on Tesla's fortunes. Registrations of BYD cars jumped more than 800 percent from a year earlier, to nearly 1,860 vehicles, although the Chinese EV giant is just beginning to make inroads in Germany. EY analyst Constantin Gall said many EV manufacturers had "significantly reduced the price difference between combustion engines and comparable electric vehicles, and are also offering very attractive financing or leasing conditions for electric cars". The German auto market has performed weakly in recent years, and is still about 28 percent below pre-pandemic levels, according to EY.
Le Figaro
9 hours ago
- Le Figaro
'There Will Be Deaths': Why French Retailers Are Sounding the Alarm on China's Temu and Shein
Réservé aux abonnés After clothing, the two Asian platforms Temu and Shein have successfully extended their offer to new product areas. Distributors are now sounding the alarm. 'If nothing changes in the next two to three years, there will be retail deaths,' warns Emmanuel Le Roch, general delegate of the Procos federation, which represents 310 specialist retailers with sales of 110 billion euros. In their crosshairs: Temu and Shein. In just a few years, these Chinese e-commerce sites have conquered hundreds of millions of consumers around the world with low-priced items of all kinds, including toys, home decoration, and small furniture items. After ready-to-wear, these two formidable competitors are progressively attacking other areas of commerce, making more and more French retailers tremble. "Like clothing, the market for small decorative items is the hardest hit. But today, almost all retail segments are affected, from hardware to electronics to small household appliances," Le Roch says. All these small products sold on Chinese platforms are nibbling away at the market share of retail players. This share remains small, but it's enough to make them even more…
