The hardest hit category in the past 12 months was the automotive sector, which dropped 15.2%.
Other retail sectors to suffered a decrease include apparel (-10.6%), jewellery & watches (-8.2%), furniture (-6.9%), footwear, clothing accessories (-5.0%), miscellaneous consumer goods (-2.0%) and food, alcoholic drinks and tobacco (-1.4%).
Supermarkets fared a little better posting a 1.2% increase.
A government spokesman said retail sales showed a smaller year-on-year decline in June than in May and the volume of retail sales rebounded mildly in the second quarter from the first quarter.
This indicates that consumer confidence held up firmly in recent months, said the spokesman in a statement.
Caroline Mak (pictured), chairman for the Hong Kong Retail Management Association, advised marketers to strive balance in brand equity marketing and quantifying measurable sales.
She warned marketers there was a danger in cutting brand advertising and going straight to promotional advertising.