The Government released the latest retail sales figures of June. The total retail sales value was HK$35.2 billion, edged down 6.7% year-on-year. For the first half of 2019, the total retail sales value decreased by 2.6% year-on-year. The downtrend in the sales value of retail categories related to visitors' spending has been amplified; the sales value of Jewellery, Watches and Clocks, and Valuable Gifts dropped by 17.1%.
With the uncertainties brought by the prolonged US-China trade war and the depreciation of Chinese yuan, the Association has already indicated earlier that the retail market will remain weak this year. Nonetheless, due to the protests that have been going on since June, majority of our member companies indicated that the sales performance has further dampened during the July and August summer sales season. Some member companies even reported high double-digit drop in sales for shops located at the protest areas.
According to government's figures, the total number of visitor arrivals is declining on a weekly basis since mid-July and the drop was widened to near 50% in mid-August. Given the protests have further spread to different districts as well as the Hong Kong International Airport, the Association expects a double-digit drop in total retail sales value for the year 2019.
In fact, the damage to retail business has directly impacted the frontline staff's take-home income. Some member companies reported that their staff's income, which is paid on a commission basis, has also declined accordingly because of the tremendous sales drop caused by significant business disruptions. Furthermore, retail-related industries, such as the import and export trade, wholesale, transportation and storage sectors, will also suffer from the subdued retail market.
As the recent incidents have made an immediate and profound impact on the retail industry, the Association has issued a letter to call for all landlords to collaborate at these critical moments by offering rental and management fee relief measures. Facing such unprecedented crisis, retailers are in critical need of the support from our stakeholders to sail through the challenges without going out of business or cutting headcount. At this critical juncture, the Association tries its utmost to assist members and fellow retailers to survive the ordeals and to sustain the long-term development of our industry.
On my last note, the Smart Retailing E-Newsletter of this month focuses on cyber security and online payment, analyzing how cyber security of e-shops can be enhanced so that customers may shop online safely without worries. I hope you will find the information inspirational and insightful.
