Hong Kong's retail sector is in a rough patch, with sales declining for over a year as more locals opt to shop and vacation in mainland China instead. Chief Executive John Lee acknowledges the slump but argues it shouldn’t define the entire economy. He’s urging businesses to step up their game—adapting to shifting consumer habits and finding ways to stay competitive.

Editor’s Note: This isn’t just about fewer people shopping locally—it’s a sign of deeper shifts in Hong Kong’s economy and consumer behavior. If businesses don’t pivot, the city’s retail landscape could keep shrinking. But Lee’s push for adaptation hints at a bigger question: Can Hong Kong reinvent its appeal, or will cross-border spending keep draining its vitality?