HONG KONG, Oct 14 — Supermarket chain Uselect has joined the growing list of businesses shutting down in Hong Kong, responding to an ongoing retail slump.

While some residents express a preference for smaller shops and continue to support local businesses, many are opting to shop in mainland China, as reported by the South China Morning Post (SCMP) today.

In recent weeks, several retailers and restaurants have announced closures, as a shift in consumer behaviour post-Covid has seen residents heading to mainland cities for shopping or tightening their budgets.

Uselect, owned by China Resources Group, now operates about 40 locations, down from around 100 last year.

According to SCMP, the closure of its Queen’s Terrace store on October 23 is among the latest, with notices also appearing at branches in Tin Hau and Chai Wan.

Local retiree Jenny Wong, 65, expressed her disappointment, attributing the closure to the city’s economic struggles and competition from nearby Shenzhen.

"The local supermarket is essential. I feel like I need to support local stores,” she said.

In August, Hong Kong’s retail sales fell by 10.1 per cent year-on-year, marking the sixth consecutive monthly decline.

However, support for smaller businesses has allowed some to thrive despite the overall downturn.

Sisters Liu Yuen-ting, 31, and Eunice Liu, 26, echoed this sentiment, sharing their experience of travelling from Tai Po to shop locally.

"Some shops are really unique in Hong Kong,” Eunice said, highlighting the charm of local stores that offer items unavailable in mainland China.