- Hans Weber
- December 1, 2023
Czech Retail Sales Mark Sixteenth Consecutive Month of Decline, Dropping by 2.8% in August
Czech retail sales have taken another hit, marking the sixteenth consecutive month of declining revenue. According to the Czech Statistical Office, retail sales in August registered a 2.8% drop, reflecting an accelerated decline compared to July.
The decline in revenue can be attributed to lower sales in both non-food and food items. In a month-to-month comparison, retail sales in August decreased by 0.8%.
Non-food items bore the brunt of the decline, witnessing a substantial 4.1% drop in revenue, while food sales also experienced a significant dip of 3.2%. It’s worth noting that the sale of motor fuels has been a rare bright spot, as it has continued to grow since March, with a 3.7% increase compared to the previous year. However, it’s important to mention that this growth coincides with rising motor fuel prices compared to the previous year.
Among the sectors most affected by the decline is clothing retail, which has seen a staggering 25% drop in sales compared to 2019. Interestingly, despite the significant decrease in sales quantity, retailers in this sector have managed to generate more revenue, thanks to substantial price increases. This was highlighted by Petr Dufek, an economist at Creditas Bank.
Specialized household product stores witnessed a notable decline of 9.3% in revenue, while clothing and footwear stores saw a decrease of 8.4%. Retailers dealing with computer and communication devices experienced a 7.7% decline, and stores selling pharmaceutical and medical goods saw a drop of 2.8% in revenue. Customers also spent 1.3% less on culture, sports, and recreation products compared to the previous year.
However, there were a few bright spots in the retail landscape. The beauty and personal care sector observed a healthy increase of 4.6% in revenue compared to August last year. Additionally, internet and mail-order businesses experienced a rise in revenue, with a 2.8% increase.
The persistent decline in retail sales presents significant challenges for the Czech market, underscoring the urgent need for innovative strategies to stimulate consumer spending and support the recovery of the retail sector. Finding ways to reignite consumer confidence and reinvigorate retail sales will be crucial for the country’s economic revival.
Article by Prague Forum