Retail trade index
17. Jan 2025
Clothing sales up in Q3 2024
Faroese retail sales figures (listed here in nominal values converted to real values) are now available for the third quarter (Q3) of 2024.
In nominal prices, grocery stores (referred to in the statbank as ‘Retail sale in non-specialised stores with food, beverages and tobacco predominating’) saw a 2% sales increase from Q3 2023 to Q3 2024. By subtracting the inflation rate, we get the actual volume of sold goods (real sales). Real sales for grocery stores dropped by 2% year-on-year. In other words, despite a 2% increase in sales value, the sales volume fell by 2%.
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Household equipment sales decline
‘Retail sale of furniture, lighting equipment and other household equipment in specialised stores’ is a subcategory of ‘Retail sale of other household equipment in specialised stores’. Sales in this subcategory fell by 5%, both in nominal terms and real terms.
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Increase in clothing sales
‘Retail sale of clothing in specialised stores’ rose 3% in nominal terms over this period, while the volume of sold goods increased by 7%.
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Retail trade index in a new format
A different reporting format for Faroese retail sales figures was introduced in January 2024. Retail sales will continue to be listed in nominal values converted to volume of sold goods. In the old format, figures were divided into the following three main commodity groups: ‘groceries and non-alcoholic drinks’, ‘clothing and footwear’ and ‘furnishings and household equipment’, and the retailers were classified in accordance with the statistical classification of economic activities in the European Community (NACE) Rev 1.
The new and revised retail trade index follows the wholesale and retail sale format used by Eurostat. The retail trade index covers companies in the NACE Rev. 2 ‘G47 Retail trade, except of motor vehicles and motorcycles’, updated from 2001 onwards.
The old format included 3 commodity groups. The new format contains 9 industry branches, 4 groups along with the G47 division. NACE codes are based on four levels.
Example:
NACE level 1: G Wholesale and retail trade; repair of motor vehicles and motorcycles. Sections.
NACE level 2: G47 Retail trade, except of motor vehicles and motorcycles. Divisions.
NACE level 3: G.47.1 Retail sale in non-specialised stores. Groups.
NACE level 4: G.47.11 Retail sale in non-specialised stores with food, beverages or tobacco predominating. Classes.
The old commodity groups ‘groceries and non-alcoholic drinks’, ‘clothing and footwear’ and ‘furnishings and household equipment’ generally represent the same types of companies listed in ‘G.47.11 Retail sale in non-specialised stores with food, beverages or tobacco predominating’, ‘G.47.7.1 Retail sale of clothing in specialised stores’, ‘G.47.7.2 Retail sale of footwear and leather goods in specialised stores’ and ‘G47.5 Retail sale of other household equipment in specialised stores’.
Definitions:
- Nominal prices: the price paid for a product or service at the time of the transaction. Nominal prices reflect the buying power in the year in which the transaction occurred.
- Seasonally adjusted figures are modified to eliminate the effect of seasonal influences. Some months have high levels of seasonal fluctuations, making it difficult to adjust for seasonal influences.
- Real prices are adjusted for inflation, giving an indication of sales volume.
- The trend describes the measured figures, adjusted for seasonal changes and other random factors.
- Index show the percentage changes from one year to another with a base year set at 100. The difference between two years and comparisons with the base year are measured in percentages.
- Sales figures reveal the turnover of companies offering goods and services in the various commodity groups.