Lunar New Year Recap: China’s Retail Sales Grow at the Slowest Pace in Years

Executive Summary

According to China’s Ministry of Commerce, total retail and food-service sales in China during the Lunar New Year period (February 4-10) rose to ¥1.0 trillion (US$148.7 billion), growing by 8.5% year over year.

• Lunar New Year’s Eve dinners, family reunion feasts and dinners with relatives and friends dominated festival dining consumption, and the number of orders for fully- or half-cooked dinners sold online rose noticeably.
• This year’s 8.5% growth in holiday sales was the slowest since 2005, indicating that Chinese consumers are becoming increasingly frugal amid uncertainty caused by the U.S.-China trade war, the changing macro environment and a slowing Chinese economy.