Hong Kong’s catering and retail businesses are reporting that sales during the Lunar New Year holidays last week have been weaker compared to the same holiday period last year.
The catering sector suffered a 10 percent drop in revenue during the Chinese New Year compared to 2015, according to Simon Wong, president of the Hong Kong Federation of Restaurants.
The industry was affected due to factors such as outbound travel by locals and the recent volatility in the stock market, the Hong Kong Economic Journal quoted Wong as saying.
The catering sector’s total revenue this year is likely to fall below the HK$100 billion mark, after HK$104.4 billion last year, he said.
In other comments, Wong said that more restaurants are likely to move to smaller premises in order to reduce their rental costs.
Meanwhile, the report noted that some prominent retailers have also seen a dent in their holiday sales.
Cosmetics chain Sa Sa International (00178.HK) is said to have recorded a 20 percent decline in sales during the first seven days of the Lunar New Year, with same-store sales down 19 percent.
The slide in holiday sales marked the worst such showing since records began, the report said.
Sales to mainlanders were said to have plunged 26 percent over the period, while the average invoice amount shrank 9 percent.
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