Retail stores saw year-on-year growth in Q2 this year. The figures are split into three main commodity groups: ‘groceries and non-alcoholic drinks’, ‘clothing and footwear’ and ‘furnishings and household equipment’. Compared to Q2 2019, ‘groceries and non-alcoholic drinks’ and ‘furnishings and household equipment’ sales grew by 14%, while ‘clothing and footwear’ sales grew by 7 percent.
Covid-19 restrictions have had a great impact on households and the industry. A relevant question in this context is how these unusual circumstances have affected retail sales.
The Covid restrictions were introduced in mid-March, but despite most of Q1 being largely unaffected by Covid-19, sales of clothing and footwear went down 8.5% in Q1 2020 compared to Q1 2019. The sales figures for Q2, however, now show a year-on-year increase of 6.9%. These figures are a combination of price and amount of goods sold, adjusted for price changes. The average price of clothes and footwear has seen an average increase of 3.3% from Q2 2019 to Q2 2020. Converted to volume, the increase is 3.4%. The trend has thus turned from negative in Q1 to positive in Q2.
Retail sales of groceries and non-alcoholic drinks have seen an unusually high growth in the first half of this year compared to the same period last year, with sales in Q1 and Q2 2020 increasing by 12.1% and 14.2%, respectively. A similar growth was seen in 2007 and shortly before the international financial crisis. This year’s increase is likely to a large extent due to households cooking at home due to the closure of public institutions, schools and restaurants. The price of groceries and non-alcoholic drinks saw an average year-on-year increase of 1.7% in Q2 2020. Converted to volume, the increase is 12.5%. The latest figures show an increasing trend.
Retail sales of furnishings and household equipment in Q1 and Q2 of this year increased by 6.7% and 14%, respectively, compared to the same period last year. While prices in this commodity group have, on average, declined over the past decade, the average prices have increased from Q2 2019 to Q2 2020. Converted to volume, the increase is 13.3%. The latest figures also show an increasing trend.