Households hit the brakes. Retail sales continue to decline

“Consumers were only more interested in pharmaceutical and medical goods than last year, sales in other types of stores decreased,” said Marie Boušková, director of the Department of Trade, Transport, Services, Tourism and Environment Statistics of the CZSO.

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Sales in specialized stores with computer and communication equipment fell by 15.1 percent year-on-year in July. Sales for fuel fell by 13.5 percent, for non-food goods by more than seven percent, and for food by five percent.

Sales of food sellers in specialized stores decreased by 7.9 percent compared to last July. In non-specialized stores with a predominance of food, they fell by 4.9 percent.

Statisticians also noted a drop in sales in the first month of the holiday for household products, by 12 percent. Sales of products for culture, sport and recreation fell by less than a tenth.

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On the contrary, sales growth was reported by shops with pharmaceutical and medical goods. In July, people spent 1.8 percent more money in them than a year ago.

Sales of online and mail-order stores fell by almost six percent. “Online stores recorded a decrease in sales for the seventh month in a row,” said Boušková.

People also spent less money at car dealerships and service centers. Sales and repairs of motor vehicles were 6.2 percent lower year-on-year. Sales of motor vehicles, including spare parts, as well as repairs, recorded a decrease in July.

Month-on-month sales in retail trade excluding motor vehicles decreased by 0.6 percent. Compared to June, sales for fuel fell by 2.2 percent, for non-food goods by half a percent, and for food by 0.3 percent, according to the CZSO.

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“The persistent decline in retail sales, combined with a significant decline in consumer confidence, shows that households have hit the brakes hard on consumption. After all, there is nothing to be surprised about. Consumer inflation is breaking records and the most in sensitive items such as energy and food,” stated Akcenta analyst Miroslav Novák.

According to him, a permanent decline in retail development can be expected for the rest of the year for the same reasons. “Overall, a year-on-year decline in retail sales of around two to three percent can be expected this year,” he added.

The article is in Czech

Tags: Households hit brakes Retail sales continue decline

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