Drop in Czech Retail Sales Slowed Down to 1.4% in October

Czech retail sales decreased by 1.4% year on year and increased by 0.6% month on month in October, in the softest monthly drop in a year and a half.

The drop in sales eased compared to the 4% y/y drop in September and the 2.8% y/y drop in August.

“Compared to October 2022, sales of food and non-food goods decreased, whereas sales of automotive fuel increased,” commented Jana Gotvaldova of the Czech Statistical Office (CZSO).

“All assortment types of stores except for those with cosmetic and toilet recorded a decrease in sales,” she added.

Retail sales of clothing, footwear and leather goods in specialised stores decreased by 6.1% y/y, while sales of information and communication equipment decreased by 3.1%. Sales of other household equipment decreased by 2.9%, and food sales decreased by 2.4%.

Sales of cosmetic and toilet articles increased by 5.9% y/y. Retail sales via internet and mail grew by 5.3%.

Sales and repair of motor vehicles rose by 0.3% m/m and by 5.9% y/y.

Analysts surveyed by the Czech Press Agency (CTK) say the dampened consumer situation in the country is slowly signalling an uptick, although an increase in retail sales is not expected until next year with lower inflation and growth of real wages.

Jakub Seidler of the Czech Banking Association told CTK that retail sales “in comparison to pre-pandemic year 2019 dropped between January to September, the most out of all EU countries, and surpassed 4%.”

He added that sales for food dropped by 11% between January and September compared to the same period in 2019, which was the steepest drop in the EU along with Denmark.