Wholesale and retail sector lawmaker Peter Shiu on Wednesday said more enterprises have shifted their operations online since the pandemic, but it's not easy to do so.

Shiu made the comment on an RTHK radio programme after healthcare chain CRcare announced it was closing down all its Hong Kong outlets next month, with a shift planned to non-physical or specialty stores.

The legislator said businesses have been struggling to survive since Covid hit, with high rents, manpower shortages, locals heading north to spend, as well as tourists spending less.

He said the rise of online shopping is also posing a challenge to firms, but many retailers are themselves beginning to focus on e-commerce.

"I believe it really depends on what items retailers sell online, because the cost of goods sold on online platforms is definitely lower than physical stores that offer customer support. When operators are carrying out a transition, it depends on the company's profile, reputation, et cetera, as well as the product features," Shiu said.

"A lot of people hope to join online sales. If one already has its own brand or creates its own innovative products, it's actually easier for them to look for a new direction through e-commerce. But if it's simply an ordinary store selling ordinary products, it's not easy for them to conduct sales online."

He said the sector would benefit if travel to the SAR was made more convenient for people living elsewhere in the Greater Bay Area.

Chung Pok-man, vice chairman of the Hong Kong Department Stores & Commercial Staff General Union, agreed that retailers in the city are suffering.

"According to the government's data, the retail situation this year is even worse than last year. There are a lot of reasons: from the change in the mode of consumption among tourists, Hongkongers' habit of heading north, or economic factors like exchange rates," he said.

"Apart from these, we also found that after the pandemic, the industry was expecting to see a rebound that could help with business expansion. But it didn't turn out that way, there was no revenge spending after the pandemic that the industry was hoping to see. This has led to a possible surge in operational costs."