Retail sales growth slows to 3.9% y-o-y in July

2010-08-25

Retail sales at current prices grew by 3.9% y-o-y in July, which represents a clear deceleration compared with the previous month, according to data from the Central Statistical Office (GUS). The result was below market expectations, which had anticipated an increase of about 4.5% y-o-y.
In comparison with the corresponding period of 2009, sales were up in six of the main branch specialisations. The highest growth was noted in sales of furniture, radio, TV and household appliances (up by 27.2% y-o-y), pharmaceuticals, cosmetics and orthopaedic equipment (up by 19.5% y-o-y) and in sales in non-specialist retail stores (up by 15.9% y-o-y). A double-digit improvement was also registered in the case of fuels (up by 10.7% y-o-y). Somewhat less impressive sales growth was recorded by motor vehicles, motor cycles and parts (up by 7.4% y-o-y) and textiles, clothing and footwear (up by 6.8% y-o-y). On the other hand, sales of food, beverages and tobacco products dropped by 0.8% y-o-y, while sales of newspapers, books and other items at specialist stores plunged by 15.3% y-o-y.
In the first seven months of 2010 retail sales at current prices climbed 2.6% y-o-y. According to our forecasts, retail sales growth for the year as a whole will amount to 3.9%.