Czech Empty Shopping Mall

William Malcolm

Czech Retail Sales Up 7.1% In June

Retail sales in June rose by 7.1 percent year on year after adjusting for calendar effects. It is a similar result as in previous months. In April, after-revision growth was 7.2 percent, in May 7.3 percent. The loosening of anti-epidemic measures helped. This follows from data published today by the Czech Statistical Office (CSO). In a month-on-month comparison, sales of traders increased by 0.6 percent. According to analysts, retail sales are above the pre-crisis level, and according to them, they should remain there.

Due to the improvement of the epidemic situation and the smaller number of coronavirus infections, all stores could be opened in June. “Growth was recorded in all major assortment groups,” said Marie Boušková, director of the CZSO Department of Statistics on Trade, Transport, Services, Tourism and the Environment.

Revenues from non-food products increased by 9.9 percent, from fuels by 6.6 percent and from food by 3.3 percent.

Stores of computer and communication equipment earned almost a quarter more than last year. Cosmetics and toiletries stores improved 11.4 percent and people spent 10.8 percent more on clothing and footwear than last June. Sales in pharmaceutical and medical stores were seven percent higher, similar to households. Internet shops then recorded a year-on-year growth of 14.5 percent.

Sales and repairs of motor vehicles increased by calendar-adjusted sales by 15.7 percent year-on-year. The same result was in the case of unadjusted sales. Sales of cars, including spare parts, increased by 17.7 percent and sales of cars by 8.7 percent.

Analysts: Retail sales are above pre-crisis levels, they should stay there

According to analysts, retailers continued to prosper in June. Revenues are above the pre-crisis level, where they should be maintained in the coming months. But the pace of growth is likely to be slower. Despite the open stone shops, Czechs still enjoy shopping on the Internet. Compared to other forms of sales, the increase in sales of online merchants is above average. This follows from the statements of analysts that ČTK addressed today.

According to the Czech Statistical Office, retail sales in June rose by 7.1 percent year on year after adjusting for calendar effects. According to Generali Investments CEE chief economist Radomír Jáč, unadjusted growth was 7.2 percent, while the market expected an increase of 5.4 percent.

“Year-on-year, we managed to increase sales in all groups of retailers, with the exception of retailers in stalls and markets.

According to ČSOB economist Petr Dufek, the entire retail sector has not moved significantly yet, with the exception of online retailers. According to him, they have already achieved more than a fifth increase in sales this year. Jáč added that the growth of 14.5 percent is above average compared to other forms of sales, despite the high base effect from last year. According to the chief economist of BH Securities, Štěpá Křeček, older people also liked online shopping. According to him, they are used to comparing offers in stores through shopping leaflets. They are now comparing prices on the Internet, he said.

Komerční banka economist Michal Brožka expects a rather slower increase in retail sales in the coming months. “At the beginning of July, this is also indicated by the decline in consumer confidence. For the whole year, our forecast expects retail growth excluding car sales to be close to three percent,” he said. According to its analyst David Vagenknecht, Raiffeisenbank expects growth for the whole year without taking into account cars to be around four percent, including car sales by 5.2 percent.