Hong Kong Retail Outlook 2024

February 2024

The retail sector in Hong Kong witnessed a period of recovery in 2023. Total retail sales showed a year-on-year increase of 16%, reaching HK$407 billion. Given the low base in 2023, this rebound in consumer spending was largely driven by a resurgence in tourism after the boundary re-opening between Hong Kong and the Chinese mainland.

On 8 Feb, PwC held a “Hong Kong retail outlook 2024” press conference and offers a cautiously optimistic outlook for the retail industry – a year-on-year increase of 5% in total sales, bringing the figure to HK$428 billion. Retail sales will recover more noticeably in the second half of 2024 with the expectation that global interest rates would be gradually eased from the second quarter of the year onwards, benefiting equity and real estate market valuations. The possible rebound of the renminbi is also expected to diminish the price differential between the Chinese mainland and Hong Kong.

The retail landscape in Hong Kong is influenced by a range of factors prompting retailers to be proactive. It is crucial for industry stakeholders to equip themselves with the necessary knowledge and strategies to succeed in this ever-evolving retail environment.