Retail sales continued to plummet in Q3

2009-12-10



The retail sales have plunged dramatically in Slovakia this year, seeing the worst performance in 15 years. The decline in retail sales in Q3 2009 has ranged between 5% and 25% on a year-on-year basis, depending on the assortments of goods, the Slovak Statistical Office reported.
The lowest decline was registered by foodstuffs, tobacco and beverages, which saw only slight drops during the period. The most significant decline was seen over the period by non-foodstuffs, which saw in September 2009 a y-o-y decline of over 25%.
The main reason for the decline in sales was the economic crisis, which led to uncertainty regarding the individual and households incomes, and growth in unemployment. All these prompted consumers to spend less and go for low-cost products. The attractive euro exchange rate in Slovakia’s neighbouring countries also lured Slovak consumers to shops across the borders.
The Christmas sales, which are the peak of revenue generation for all the retailers, are not expected to offset the decline in the country’s retail sales, according to analysts from the market research agency Terno. The individual spending during the Christmas break is expected to range between €300 and €480 this year, which is less than in the same period last year.