Hong Kong’s retail sector continued its recovery momentum in November 2025, with annual retail sales climbing 6.5% in value to HK$33.7 billion ($4.33 billion). This marks the seventh straight month of year-over-year gains, driven by a surge in visitor arrivals and improved local consumption, according to government data released on January 2. The robust retail performance signals strengthening economic conditions in the city.

Retail Sales Accelerated by Tourism Growth

Retail sales growth in November moderated slightly from October’s 6.9% increase but remained strong. In volume terms, retail sales rose 4.4%, down from a 5.3% volume increase in October, indicating solid consumer demand. For the first 11 months of 2025, total retail sales value edged up 0.4%, while volume declined 0.9%, reflecting some moderation over the longer term.

The Hong Kong Tourism Board reported a significant rise in visitor numbers, with arrivals jumping 17.4% year-on-year to 4.19 million in November. Mainland China accounted for the majority of visitors, with an 18.9% increase to 3.04 million tourists, bolstering retail consumption. This influx has been a key factor in sustaining retail sales growth across several categories.

Strong Performances in Luxury and Apparel Segments

Among retail categories, sales of jewellery, watches, clocks, and valuable gifts advanced 3.6% in November, although this was a slowdown from October’s robust 9.4% growth. Meanwhile, the clothing, footwear, and allied products segment grew 2% year-on-year in November, improving from a 0.9% rise in October. These figures indicate ongoing resilience in sectors tied to discretionary spending and luxury goods.

A government spokesperson emphasized the combined effect of improving local consumption sentiment, steady economic growth, and vibrant inbound tourism in underpinning these retail trends. Exchange rates remained stable at approximately HK$7.79 per US dollar during this period, preserving purchasing power for both residents and visitors.

Retail: Market Outlook

Hong Kong’s retail sales rising by 6.5% in November cements the city’s gradual economic rebound, supported by a marked increase in inbound tourism, particularly from mainland China. The steady demand for luxury items and apparel points to growing consumer confidence, positioning retailers to capitalize on expanding opportunities.

With visitor arrivals continuing to climb and consumption sentiment strengthening, the retail sector is well-placed to sustain its growth trajectory into 2026. This outlook reinforces positive investor sentiment toward Hong Kong’s broader economic recovery and retail market potential.