Retail sales were down 6.9 percent in September compared to the same month last year, marking the seventh consecutive month of year-on-year declines.
Official data released on Friday showed that the total value of retail sales came in at HK$29.6 billion.
The drop followed a revised 10 percent fall in August and an 11.7 percent decrease in July.
Sales of motor vehicles and parts saw the most dramatic fall, with a 26.7 percent drop.
Officials said a change in consumer patterns will continue to affect the retail sector in the near future.
"Nevertheless, an improved outlook for the mainland economy following the recent introduction of a wide range of stimulus measures, and a possible easing of the Hong Kong dollar alongside the US dollar with the commencement of the US interest rate cut, would be conducive to boosting sentiment and supporting spending," a government spokesman said in a statement.
However, the executive director of the Retail Management Association, Bond Law, said the sector is pessimistic about sales for the rest of the year.
"It's anticipated that many local people will travel abroad during the Christmas period, and certain domestic-related retail categories are expected to see a decline in business," he said.
"Due to the absence of Christmas holidays on the mainland, the tourist-related retail categories, such as watches and jewellery, are also expected to perform worse than last year."