Retail sales in the Czech Republic have experienced their thirteenth consecutive month of decline, according to revised data released by the Czech Statistical Office (CZSO). In May, retail sales exhibited a year-on-year decrease of 6.1%, representing a slight improvement compared to April’s decline of 8.4%. However, there was a monthly increase of 0.5% in sales.

When compared to May of the previous year, sales of non-food products decreased by 9.2%, while sales of food products experienced a decline of 6.4%. In contrast, sales of motor fuels saw an increase of 11.5%.

The CZSO’s report indicates that all types of stores, except those specializing in computer and communication equipment as well as pharmaceutical and medical products, reported lower sales. Non-specialized stores with a predominance of non-food products saw an increase in sales.

Within specific product categories, sales of household products decreased by 16.2%, clothing and footwear sales declined by 12.4%, sporting goods sales experienced a decrease of 7.2%, and toiletries sales saw a decline of 2.6%. However, sales of computers and communication devices increased by 2.6%, and sales by pharmacies rose by 1.4%.

Sales of food products decreased by 6.5% in non-specialized stores with a predominance of food products and by 3.6% in specialized food stores. Internet and mail-order stores also faced a decline in sales, marking the seventeenth consecutive decrease, this time by 8%.

On a positive note, sales and repairs of motor vehicles increased by 2.3% year-on-year in May. Customers also paid 2.7% more for motor vehicles, including spare parts, compared to the previous year. Repair sales experienced a modest increase of 0.7%.

The continuous decline in retail sales is a significant concern for the Czech Republic’s economy. Companies are grappling with the financial repercussions of the COVID-19 pandemic, and the CZSO’s data suggests that consumer spending remains hesitant, impeding the recovery process. The sustained downturn emphasizes the need for measures to stimulate consumer confidence and support businesses as they navigate the challenges posed by the ongoing economic uncertainties.

Article by Prague Forum