Hong Kong Retail Sales Drop despite an Uptick in E-Commerce, Tourism Lifts Hopes

For the 12th consecutive month, Hong Kong's retail sales have declined, but a possible recovery is indicated by the city's booming tourism and mega events.

The ongoing fall in retail sales is proof that Hong Kong's retail market is still facing serious difficulties. The overall retail sales value fell 13% year over year to HK$29.4 billion in February 2025, the 12th consecutive month of decline, according to Knight Frank research.

The early arrival of Lunar New Year in late January this year contributed to the reduction. However, the total retail sales value for the first two months of 2025 was HK$64.8 billion, a 7.8% drop from the same period the year before.

The retail scene in Hong Kong has been changing recently due to the arrival of Chinese e-commerce behemoths like Alibaba and JD.com. Alibaba has launched its first location in Tsim Sha Tsui, while JD.com is planning to create a JD Mall with a home appliance theme. Because internet platforms provide far lower costs and more effective after-sales services, these advancements not only provide consumers more options, but they also present difficulties for local shops.

These advanced online-offline strategies make e-commerce merchants more appealing to consumers, which has an additional effect on conventional brick-and-mortar establishments. Positively, the Hong Kong Super March activities greatly increased the number of tourists visiting Hong Kong. In March, there were almost 3.4 million visitors, a 12% YoY increase that included 960,000 foreigners. A record 140,000 people attended the Hong Kong Sevens, and Art Basel and ComplexCon also claimed high attendance. With 91,000 guests, a 21% increase, Art Basel closed its doors with great success. 35,000 people attended YoY at ComplexCon, a 16% YoY increase. In desirable areas, hotel occupancy rates were close to 90%.