Sales of Czech retail stores in March showed a month-on-month increase of 1.3%, corresponding to a year-on-year increase of 6.1%. This is a pleasant surprise compared to market expectations (2.8%). Additionally, the February figure was revised upwards, now standing at 2.5% instead of the originally reported 1.6%.

Year-on-year, the most significant growth was in sales of cosmetics and toiletries (27.4%), other non-specialized store retail (17.1%), and internet retail (14.9%). Conversely, the smallest growth was in sales of computer and communication equipment (0.1%), cultural, sports, and recreation products (2.7%), and household products (3.1%).

Month-on-month, the fastest growth was in sales of cosmetics and toiletries (5.1%), stalls and markets (2.7%), and cultural and recreational products (2.6%). On the other hand, less impressive results were reported in the sales of pharmaceutical and medical goods (-0.2%), internet or mail-order retail (0.1%), and food (0.5%).

The March data represent a significant relief after the February disappointment. The Czech economy urgently needs consumers to return to stores, which should be encouraged by renewed growth in real wages, improved economic sentiment, and a decline in interest rates. It was therefore surprising when this trend was disrupted in February, and statisticians reported a month-on-month drop in sales.

Now, we have witnessed a double reassurance. The March statistics again report an improvement in the situation, and the February figure has been revised upwards. Fortunately, there is no shock; sales are growing, and the economy is recovering. Czech retail indeed has much to catch up on, as its real sales remain 3.2 percent below the level of pre-pandemic January 2020. The past crisis years have by far the most severely affected stall and market vendors, who are still missing 46.3 percent of their pre-pandemic sales. The first three months of this year have brought a 4 percent improvement in retail so far, and we believe the best is yet to come. After last year's decline of 4.2 percent, we are looking forward to a robust 6.5 percent increase in sales this year.

Source: https://e-news.cz/
CzechTrade Australia