Retail sales surge as stock market boom fuels shopping frenzy

The 'golden week' holiday just ended provided a bonanza for Hong Kong and mainland retailers as holidaymakers helped lift sales by up to 40 per cent at some popular outlets.

Retailers attributed the surge in sales to the festive mood among shoppers, whose spending power and positive sentiment were buoyed by bullish stock markets.

Ports Design, a mainland high-end fashion retailer that carries the Ports 1961 and Ports International brands, reported that sales from October 1 to October 4 surpassed the year-ago level by 35 per cent.

'Beijing and Shanghai appeared to be the strongest in the growth of retail sales,' said Ports chief executive Alfred Chan Kai-tai. 'Consumers appeared to be in a very festive mood and to be willing to use credit a lot more than last year.'

Hong Kong mid-range fashion retailer I.T said sales revenues earned between September 29 and October 3 were up 12 per cent locally and 40 per cent in the mainland. 'Growth in sales was across all brands and cities, with Beijing performing best,' said vice-chairman and managing director William Lo Wing-yan.

Jewellery retailer Chow Sang Sang said average ticket prices rose 10 per cent during the golden week to between HK$3,500 and HK$4,000. General manager Vincent Chow Wing-shing said growth was primarily driven by mainland tourists visiting Hong Kong.

Chow Sang Sang's rival, jewellery chain Tse Sui Luen (TSL), posted double-digit growth in sales both in Hong Kong and the mainland. 'I think the major reasoning is that the overall market sentiment is quite positive due to the stock market's bull run,' said TSL executive director Erwin Huang.