Romania’s retail sales edge up 1% y/y in July

By bne IntelliNews September 3, 2013

Romania’s retail sales index edged up 1% y/y in July after two consecutive months of a negative annual performance, the statistics office reported. The seasonally- and workday-adjusted index picked up 2.1% m/m.

Nonetheless, the slight improvement of retail sales in July is not reversing the sluggish dynamics visible over the past six quarters. Indeed, non-food sales have gained ground constantly over the past three years and are now over 10% above the benchmark mid-2010* level, but the overall retail sales index has stagnated over the past six quarters only marginally above the mid-2010 level.

The sluggish advance of wages, negative in real terms for the private sector, and the slow increase of the employment will predictably prevent any major improvement in the retail sales. The higher heating bills over the winter season, after the first steps toward natural gas price liberalisation, will rather put downward pressures. The consumer credit remains subdued and in any case insufficient for generating visible impact on the retail sales.

Notably, non-food sales advanced by 4.2% y/y in July and maintained the same robust positive dynamics seen in Q2. On the opposite, the sales of food items contracted by 1.1% y/y after a similar negative 1.3% y/y performance in Q2. The sales of car fuels remained in the negative area in July also, after losing momentum in Q1 and Q2.

* Romania’s government enforced a fiscal austerity package in mid-2010, including a 5pps VAT rate hike and a 25% public wage cut – with visible impact on retail sales.

Retail Sales Index 2009 2010 2011 2012 Q1-13 Q2-13 Jul-13
Total -10.1% -6.6% -2.0% 2.9% -0.1% -1.8% 1.0%
Total, swda* q/q, m/m n.a. n.a. n.a. n.a. -1.0% -1.6% 2.1%
A. Food stores -3.6% -9.6% -6.8% 2.4% 1.7% -1.3% -1.1%
B. Non-food stores -9.7% -9.0% 1.7% 1.6% 0.6% 2.3% 4.2%
C. Car fuel -19.7% 3.3% -1.6% 6.2% -3.9% -8.5% -1.0%
Source: INS, *seasonally and workday adjusted

 

Related Articles

Over 20,000 rally in Bucharest against plans to amend criminal legislation

More than 20,000 Romanians rallied on January 22 against the government’s plans to pardon some convicts and amend criminal legislation through emergency ordinances. The protest was attended by ... more

Romanian software producer Bitdefender takes over French peer Profil Technology

Romanian security technology company Bitdefender has acquired its French peer Profil Technology as part of its expansion strategy on the corporate segment.  The terms of the deal were not ... more

Czech CPI buys huge Central European retail portfolio

Czech real estate investor CPI Group has bought a large portfolio of Central European retail assets, local media reported on January 17. The investor, which has grown its holdings rapidly since ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss