Macao’s retail sales soar by 29.3% YoY in Q1 2023, boosted by Chinese food products

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24th May 2023 – (Macao) Macao’s retail sales for the first quarter of 2023 reached 24 billion patacas, which is approximately 2.97 billion U.S. dollars, an increase of 29.3% compared to the same period last year, according to the latest report from the Statistics and Census Service. The report also highlighted that sales values of Chinese food products increased by 230.4% YoY, while sales values of watches, clocks and jewellery, leather goods, cosmetics, and sanitary articles experienced growth of 52.7%, 41.9%, and 37.1%, respectively.

However, sales values of communication equipment decreased by 30.2%. The value of retail sales in Q1 2023 increased by 62.3% compared to the revised figure of 14.79 billion patacas in Q4 2022. Sales values of Chinese food products, leather goods, watches, clocks and jewelry, and department stores surged by 257.2%, 106.5%, 106.0%, and 91.1%, respectively.

The sales volume index also rose by 64.8% quarter to quarter. The significant rise in retail sales values could be attributed to the ongoing recovery of the retail sector in Macao, which has been heavily impacted by the COVID-19 pandemic. This surgein sales values is a positive sign for the local economy and indicates that consumer confidence is returning.

The report’s findings reveal that the demand for Chinese food products has experienced a significant boost, with a 230.4% YoY increase in sales values. This could be attributed to the popularity of Chinese cuisine in Macao and the high number of tourists who visit the region to experience authentic Chinese food. The growth in sales values of watches, clocks, and jewelry, leather goods, cosmetics, and sanitary articles indicates that the luxury retail sector is also recovering.

However, the decline in sales values of communication equipment could be attributed to the ongoing global semiconductor shortage, which has impacted the production of smartphones and other electronic devices.

The rise in sales values of Chinese food products, leather goods, watches, clocks, and jewellery, and department stores could be attributed to the Chinese New Year holiday, which fell in February 2023. This holiday is traditionally a peak sales period for retailers in Macao, and the surge in sales values could be attributed to increased spending during this period.