Business climate survey on restaurants & similar establishments and retail trade for June 2017

Information from the Statistics and Census Service (DSEC) indicated that 45% of the interviewed restaurants & similar establishments reported a year-on-year growth in receipts in June 2017, down slightly by 1 percentage point from May. The corresponding proportion of Chinese Restaurants (44%) went down by 19 percentage points, while the shares of Western Restaurants (45%) and Other Restaurants & Similar Establishments (52%) each went up by 10 percentage points. On the other hand, 33% of the establishments recorded a year-on-year decline in receipts, the same as in May. The corresponding proportions of Chinese Restaurants (40%) and Western Restaurants (40%) rose by 14 and 10 percentage points respectively.

As regards retail trade, 46% of the interviewed retailers reported a year-on-year sales increase in June 2017, down by 1 percentage point from May. Performance of different types of retailers varied, with 56% of the Watches, Clocks & Jewellery Retailers recording a year-on-year rise in sales, increasing by 11 percentage points. However, the corresponding shares of Department Stores (33%) and Adults’ Clothing Retailers (50%) dropped by 22 and 15 percentage points respectively. As in the previous month, all of the interviewed Leather Goods Retailers and 56% of the Supermarkets showed a year-on-year sales growth. Meanwhile, 34% of the interviewed retailers registered a year-on-year decrease in sales, down by 2 percentage points from May, of which the corresponding proportion of Watches, Clocks & Jewellery Retailers fell by 17 percentage points, while the shares of Motor Vehicle Retailers and Department Stores each increased by 22 percentage points.

The interviewed restaurants & similar establishments expected a slight improvement in their business during the summer holiday in July, with 29% anticipating a year-on-year rise in receipts, up by 7 percentage points from June. Among the various types of establishments, 38% of Japanese & Korean Restaurants, 39% of Chinese Restaurants and 27% of Local Style Cafes, Congee & Noodle Shops predicted a year-on-year increase in receipts in July, up by 19, 11 and 10 percentage points from June. On the other hand, the proportion of establishments expecting a year-on-year decline in receipts dropped by 3 percentage points from June to 38%, with the corresponding shares of Chinese Restaurants and Japanese & Korean Restaurants falling by 11 and 6 percentage points respectively.

Retailers expected no significant change in their business in July. The proportion of interviewed retailers predicting a year-on-year sales increase went down by 2 percentage points from June to 24%. Among the various types of retailers, the proportions of Department Stores (44%), Watches, Clocks & Jewellery Retailers (39%) and Supermarkets (22%) expecting a year-on-year sales rise each went down by 11 percentage points, while the corresponding share of Motor Vehicle Retailers (33%) rose by 22 percentage points; in addition, 80% of the Leather Goods Retailers anticipated a year-on-year sales growth. On the other hand, 38% of the retailers predicted a year-on-year sales decline, up by 1 percentage point from June. The corresponding proportion of Motor Vehicle Retailers fell significantly by 45 percentage points from June, while the shares of Department Stores and Supermarkets went up by 33 and 22 percentage points respectively. Besides, 70% of the Cosmetics & Sanitary Articles Retailers expected their sales to remain stable, up by 30 percentage points over June.

The sample of the Business Climate Survey on Restaurants & Similar Establishments and Retail Trade was selected based on the value of receipts of the establishments, comprising 167 restaurants & similar establishments (accounting for 53% of the industry’s receipts) and 135 retailers (accounting for 70% of the industry’s receipts). The Survey results were not extrapolated and only reflect the assessment of the business performance and expectations of the sample restaurants and retailers.

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