Hong Kong’s retail sector surged in February, offering its clearest sign yet that the city’s consumption recovery is taking hold, powered by a rebound in tourism and steady local demand.
Government data show total retail sales value jumped 19.3 per cent year on year to about HK$35 billion in February, the strongest growth since mid‑2023 and the tenth consecutive monthly gain. In volume terms, sales rose 17.5 per cent, indicating that the upswing is being driven by real spending rather than price effects. Because the Lunar New Year fell in mid‑February this year rather than late January, officials urged looking at January and February together, when retail sales by value climbed 11.8 per cent and volume grew 9.8 per cent from a year earlier.
The rebound has closely tracked a sharp rise in visitor arrivals, especially from mainland China. The Hong Kong Tourism Board reported 5.14 million visitors in February, up 40.2 per cent year on year, including 4.25 million mainland tourists, a 53.4 per cent increase. Authorities expect tourism to remain a key growth engine in 2026 as new attractions and events are rolled out to refresh the city’s global appeal.
[See more: Hong Kong tops global IPO rankings in first quarter of 2026]
Higher‑value and discretionary categories are at the forefront of the recovery. Over the first two months of 2026, sales of jewellery, watches and clocks, and valuable gifts jumped 27.8 per cent in value, while electrical goods and other consumer durables surged 32.4 per cent. Clothing categories also improved: wearing apparel rose 6.2 per cent, and footwear and other clothing accessories increased 9.6 per cent; in February alone, clothing‑related sales climbed 14.1 per cent year on year as festive and tourist spending peaked. Department stores and supermarkets recorded more modest gains, up 5.8 per cent and 3.3 per cent respectively, signalling solid but measured household spending.
Not all sectors benefited. Fuels sales fell 14.2 per cent in the first two months, while Chinese drugs and herbs slipped 0.8 per cent in value, underscoring pockets of softness despite the broader upturn. Seasonally adjusted, total retail sales value rose 2.4 per cent in the three months to February compared with the previous three‑month period, with volume up 1.6 per cent, pointing to building momentum rather than a one‑off spike.
Online consumption remains a powerful tailwind. E‑commerce accounted for 8.5 per cent of total retail sales in February, with online sales estimated at HK$3.0 billion, up 29 per cent year on year and outpacing the wider market. Officials have struck a tone of cautious optimism, citing “resilient” local economic momentum and “vibrant” growth in inbound visitors, while warning that external risks from geopolitical tensions and global inflation could still weigh on sentiment. For now, though, the data suggest Hong Kong’s retailers are entering 2026 on their strongest footing since before the pandemic.
