Retail trade index
26. Mar 2024
Cosmetics sales rising
The latest retail sales figures (listed here in nominal values converted to real values) are for Q4 of 2023.
In nominal prices, grocery stores (referred to in the statbank as ‘Retail sale in non-specialised stores’) saw a 4% year-on-year sales increase in Q4 2023. 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 Q4. In other words, despite a slight increase in sales value, the sales volume went down.
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Household equipment stores
Weaker results were reported in ‘Retail sale of hardware, paints and glass in specialised stores’, a subcategory of ‘Retail sale of other household equipment in specialised stores’. Sales in this subcategory dropped by just over 6% year-on-year. Adjusted for inflation, the volume of sold goods also fell 6%.
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‘Retail sale of electrical household appliances in specialised stores’ is another subcategory of ‘Retail sale of other household equipment in specialised stores’. Here, value sales fell about 5% year-on-year, with volume sales dropping similarly.
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Clothing sales unchanged
Value sales of ‘Retail sale of clothing in specialised stores’ fell 0.5% from Q4 2022 to Q4 2023, while volume sales remained unchanged.
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Cosmetics sales on the increase
Value sales of ’Retail sale of cosmetic and toilet articles in specialised stores’ rose by 10%. Adjusted for inflation, the volume of sold goods in this subcategory went up by just over 3%.
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Retail trade index now in a new format
Faroese retail sales figures will now be reported in a different format. 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.
- Indices 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.