Hong Kong Retail Sales Show Signs of Recovery in July 2025

In July 2025, Hong Kong's retail sales experienced a year-on-year increase of 1.8%, marking the third consecutive month of growth. The total sales value reached HK$29.7 billion (approximately US$3.8 billion), a notable improvement from the revised 0.7% increase recorded in June. This upward trend is attributed to a rebound in consumer sentiment and a rise in tourist arrivals, with 4.39 million visitors recorded in July, reflecting a 12% increase from the previous year. Among these, 3.51 million were mainland Chinese visitors, up 11.8% compared to July 2024.

Hong Kong’s Retail Sales Rise For Third Consecutive Month Amid Increased TourismHong Kong retail sales gain 1.8% in July amid rising tourist trafficReutersHong Kong retail sales rise for third consecutive monthSouth China Morning PostHong Kong Luxury Sales Rebound Further in July

The retail sector showed varied performance across different categories. Notably, sales of jewellery, watches, clocks, and valuable gifts surged by 9.4% year-on-year, building on a 6.9% increase in June. Other sectors, such as clothing and footwear, saw a slight recovery with a 0.1% increase after a 4.6% decline in June. Conversely, categories like food, alcoholic drinks, and tobacco experienced a decrease of 3.1%. Online retail sales also contributed positively, accounting for 8.7% of total retail sales, with a 13.2% increase compared to the same month last year.

Retail sales rise 1.8% YoY in July 2025

Despite the positive growth in July, the overall retail sales for the first seven months of 2025 showed a decline of 2.6% in value and 4.0% in volume compared to the same period in 2024. This indicates that while there is a recovery in specific sectors, the retail landscape remains challenged. A government spokesperson emphasized that local consumption sentiment is expected to remain steady, bolstered by ongoing efforts to promote tourism and large-scale events.

Hong Kong’s Retail Sales Rise For Third Consecutive Month Amid Increased Tourism

While the increase in tourist arrivals is a positive sign, many visitors, particularly from mainland China, are reportedly limiting their spending, often opting for day trips. Additionally, local residents are increasingly shopping across the border, taking advantage of the stronger Hong Kong dollar against the Chinese yuan. This shift in consumer behavior raises concerns about the sustainability of the retail recovery.

Hong Kong retail sales gain 1.8% in July amid rising tourist traffic

A spokesperson for the Hong Kong Special Administrative Region government stated, “Retail sales continued to stabilize in July. The value of total retail sales increased at a slightly faster rate than the increase in the preceding month. The government's proactive efforts in promoting tourism and mega events will also benefit retail businesses.”

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• “Retail sales continued to stabilize in July,” — Hong Kong Government Spokesperson

Hong Kong Luxury Sales Rebound Further in July

• “Local consumption sentiment should remain steady.” — Hong Kong Government Spokesperson

Hong Kong’s July retail sales log 1.8% YoY rise

• “The government’s proactive efforts in promoting tourism and mega events will also benefit retail businesses.” — Hong Kong Government Spokesperson

Hong Kong retail sales rise for third consecutive month

In summary, while July 2025 marked a positive turn for Hong Kong's retail sector, ongoing challenges remain, particularly regarding consumer spending habits and overall economic conditions.

Hong Kong retail sales gain 1.8% in July amid rising tourist traffic