In September, retail sales in the Czech Republic continued to accelerate for the fourth consecutive month, rising by 5.6% year-on-year. This growth was primarily driven by e-commerce, which saw a significant increase. According to the Czech Statistical Office (CSO), sales of non-food items, fuel, and food all contributed to this rise. Notably, online sales have been growing at a double-digit rate since the beginning of the year.

Sales in internet and mail-order businesses surged by 22.6% compared to the previous year. Non-specialized stores with a predominance of food saw a 2.5% increase, while those with a predominance of non-food items experienced a 14.3% rise. However, sales in food stores declined by 2.5%. Stores selling pharmaceutical and medical goods, as well as cosmetics and toiletries, saw nearly a 10% increase in sales. Clothing and footwear stores reported a 6.7% increase compared to last year.

Analysts attribute the growth in retail sales to rising real wages and low inflation, which support household consumption. They also note that the low comparative base from the previous year has played a role. Despite the positive trend, consumer spending remains below pre-pandemic levels, with some exceptions like cosmetics, which have seen a 30% increase in sales compared to 2019.

Overall, e-commerce continues to thrive, with sales surpassing the average levels of 2021. The expansion of pick-up boxes has also contributed to the success of online shopping. The September retail sales figures align with market expectations, indicating a 5.5% year-on-year growth. Since the beginning of the year, retail sales have increased by 4.4% and were driven mainly by non-food items.

Source: Ceskenoviny.cz

Author: CzechTrade and CzechInvest Office in New York