Retailers anticipate upcoming revenue downturn as sales plunge to MOP13b in Q2

The value of retail sales decreased by 36.6% year-on-year to MOP13.14 billion in the second quarter of 2022 amid the Covid-19 cases reported in mid-June.

69.4% of the retailers anticipated a year-on-year decrease in sales volume in the third quarter of 2022 with the downturn of economic recovery in July – when the city went into a partial lockdown to curb the spread of the coronavirus.

The tourism and gaming sector during the month fell to a new low, dropping some 99% and 95% year-on-year, respectively, due to the largest flare-up in Covid-19 cases the city has ever recorded from mid-June.

29.0% of the interviewed retailers expected sales volumes to stay stable and only 1.6% forecast an increase, according to the Statistics and Census Service (DSEC).

Meanwhile, 71.8% of the retailers predicted that the retail prices would remain steady year-on-year in the third quarter, 19.3% foresaw a decrease and 8.9% expected an increase.

As compared with the second quarter of 2022, about 74.5% of the retailers envisaged sluggish business in the third quarter, whereas retailers expecting stable performance (20.6%) and those anticipating a favourable outlook (4.9%) together accounted for 25.5% of the total.

Meanwhile, in the second quarter, among the major retail trade activities, sales values of Department Stores (-55.5%), Adults’ Clothing (-52.4%) and Watches, Clocks & Jewellery (-49.5%) showed a substantial year-on-year decline. Sales values of Supermarkets, meanwhile, (+15.9%) recorded growth. 

The value of retail sales in the second quarter of 2022 shrank by 29.2% as compared with the revised figure (MOP18.56 billion) in the first quarter. LV