Retailers expect strong Christmas sales

Retailers are hoping the sector's latest sales data will show customers are resuming their shop-till-you-drop ways, with many reporting stronger than expected Christmas sales.

While official figures for this month have yet to be released, the Census and Statistics Department said yesterday the value of retail sales in November rose 11.7 per cent year on year to a provisional HK$22.9 billion. Even after adjusting for price changes, the volume of retail sales rose 9.8 per cent.

Car trader Eric Wong Ngai-lak thinks the good times are starting to roll, saying his shop has received 12 orders for the latest luxury sports cars in three months, with some clients ordering models without even coming in to check the cars.

'They simply had a look at the car pictures before paying us the deposit,' said Wong, the chairman and chief executive of Richburg Motors in Wan Chai, adding the Lotus Evora was selling like hotcakes despite being priced as high as HK$1 million.

'The more expensive the car, the faster it will sell out,' said Wong.

The company's turnover has risen 20 per cent and customer flows have surged 30 per cent from last year.

The Retail Management Association said department stores were expected to report double-digit growth this Christmas compared with last year and forecast single-digit growth for the sector as a whole next year.

This Christmas, buffets or set dinners at many five-star hotels were already fully booked days or weeks before the festival. Long queues reappeared outside luxury-brand shops. Some leading shopping centres have seen record customer traffic and expect double-digit sales growth this festive season.

In contrast, consumers in many parts of the world were more cautious in their Christmas shopping.

The Hong Kong Trade Development Council released a report yesterday saying overall Christmas sales in the city's key overseas markets had improved from last year, but the performances varied according to location.

The report said November and December sales rose slightly in the United States and Britain but eased in other countries including Germany, Italy, France and Japan. 'Overseas consumers largely continue to trade down. After going through the financial crisis, they have turned to practical, durable, value-for-money products,' said Daniel Poon, the assistant chief economist at the council.

The TDC expects Hong Kong's exports to grow 5 per cent in value next year after falling 12 per cent this year.

In contrast to other countries, China's retail market grew a robust 15.3 per cent from January to November this year, Poon said.

Mainlanders are also powering Hong Kong's retail sector. Maureen Fung Sau-yim, the general manager for leasing at Sun Hung Kai Real Estate, said mainland tourists made up almost 20 per cent of total customers at 40 shopping centres managed by the company in the city.

'Taking into account the strong yuan and extra discounts offered by retailers during Christmas, Hong Kong has always been a very attractive shopping destination for mainlanders at this time of year,' she said.

Apm, the group's shopping centre in Kwun Tong, received 1.35 million customers from Thursday last week to Sunday, up 20 per cent. Turnover rose 15 per cent to HK$37 million.

Times Square saw a record 200,000 shoppers on Christmas Eve, while Harbour City expected a daily customer flow of 330,000 during the season, up 10 per cent year on year.

Retailers also found they did not have to cut prices as much as in December last year, Fung said.

'Last year, you would have found 50 to 60 per cent discounts on all items at most shops in early December. This year, they're only discounting 20 to 30 per cent off selected items.'