Information from the Statistics and Census Service (DSEC) indicated that the value of retail sales decreased by 15% year-on-year to MOP17.58 billion in the first quarter of 2025.

Sales values of Leather Goods, Cosmetics & Sanitary Articles, Department Stores and Watches, Clocks & Jewellery declined by 24.2%, 22.3%, 18.8% and 17.3% year-on-year respectively, whereas the sales value of Motor Vehicles increased by 12%. After removing the effect of price changes, the sales volume index fell by 17.8% year-on-year. The sales volume indices of Watches, Clocks & Jewellery (-29.9%), Leather Goods (-23.8%), Cosmetics & Sanitary Articles (-20.9%) and Department Stores (-16.4%) registered notable year-on-year drop, while the index of Motor Vehicles (+11.4%) recorded growth.

Value of retail sales in the first quarter fell by 4.6% as compared with the revised figure (MOP18.44 billion) in the fourth quarter of 2024, with relatively large decreases in the sales value of Communication Equipment (-38.8%); by contrast, the sales values of Chinese Food Products (+9.7%), Watches, Clocks & Jewellery (+6.1%) and Supermarkets (+5.6%) showed increases. Meanwhile, the sales volume index dipped by 5.5% quarter-on-quarter; the index of Communication Equipment dropped markedly by 39%, whereas the indices of Chinese Food Products, Supermarkets and Watches, Clocks & Jewellery rose by 9.7%, 5.4% and 4.3% respectively.

Retail sales value showed rapid growth in 2023 due to the release of pent-up demand following the resumption of local economic activity. However, it began to record a year-on-year decrease in the first quarter of 2024, owing to a relatively high comparison base, changes in consumption patterns, and other factors. Retail sales value in the first quarter of 2025 corresponded to 86% of the level in the same period in 2019.

In respect of retailers’ comments, 53.7% of the retailers anticipated a year-on-year decrease in sales volume in the second quarter of 2025, 37.8% expected the sales volume to stay stable and 8.5% forecasted an increase. Meanwhile, 62.5% of the retailers predicted that the retail prices would remain steady year-on-year in the second quarter, 29.6% foresaw a decrease and 7.9% expected an increase. As compared with the first quarter of 2025, about 52.3% of the retailers expected a slowdown in business in the second quarter, 35.1% envisaged stable performance and 12.6% anticipated a favourable outlook.