The value of total retail sales in February, provisionally estimated at $14.3 billion, rose 13.2% over a year earlier, the Census & Statistics Department says.

After netting out the effect of price changes over the same period, the overall volume of retail sales rose 11.4%.

The revised estimate on the value of total retail sales in January was $18.2 billion, up 4.2% in value or 3% in volume over a year earlier.

By taking the first two months of the year together for comparing with the same period in 2003 to neutralise the Lunar New Year effect, the overall volume of retail sales grew 6.6%. This represented a further pick-up from an already appreciable rise of 5.2% in the fourth quarter of 2003, reflecting continued revival in local consumer demand together with sustained growth in inbound tourism.

The improvement is particularly distinct in sales of furniture and fixtures and of commodities in department stores.

Fall in car sales moderates

Sales of electrical goods and photographic equipment remained strong, while sales of commodities in supermarkets reverted to increase. Sales of motor vehicles are still in decline, yet at a moderated pace.

Analysed by type of retail outlet and comparing January and February combined with the same period last year, sales of furniture and fixtures rose 30.9% in volume.

This was followed by sales of electrical goods and photographic equipment (27.4%); footwear, allied products and other clothing accessories (11%); miscellaneous consumer durable goods (10.1%); commodities in department stores (9.9%); miscellaneous consumer goods (9.5%); food, alcoholic drinks and tobacco (4.6%); commodities in supermarkets (3.7%); jewellery, watches and clocks, and valuable gifts (0.5%); and wearing apparel (0.2%).

Sales of motor vehicles and parts and of fuels fell 17.8% and 2.9% respectively in volume in January and February combined, compared with a year earlier.

Based on the seasonally adjusted series, the overall volume of retail sales rose 3.5% in the three months ending February as compared to the preceding three-month period.