Retail sales in the Netherlands saw an almost 8 percent increase in revenue in the first quarter of 2023 compared to the same period last year, despite a decline in sales volume of over 3 percent. This growth is attributed to higher prices. The retail sector also witnessed a higher number of bankruptcies compared to previous quarters. These findings are based on the latest quarterly data released by the Central Bureau of Statistics (CBS).
First Quarter Trends
The retail sector has experienced eight consecutive quarters of year-on-year revenue growth. However, starting from the second quarter of 2022, sales volume has been declining compared to the previous year. The upward trend in revenue since that quarter can be attributed to price increases.
Decline in Sales in DIY Stores
In the food sector, revenue increased by 9 percent compared to the previous year, while sales volume decreased by 5 percent. Supermarkets, in particular, achieved higher revenue, and specialty stores such as butcher shops and cheese stores also reported increased sales (1 percent). However, their sales volume declined by 11 percent.
In the non-food sector, revenue increased by nearly 8 percent compared to the previous year, driven by higher prices. However, sales volume in the non-food sector decreased by almost 1 percent. DIY stores experienced a decline in sales, with a sales volume decrease of 11 percent, resulting in a 3 percent lower revenue compared to the previous year.
Retail Overview
Food Sector:
- Revenue in food and beverage stores increased by 9 percent.
- Supermarkets witnessed a revenue increase.
- Specialty stores, such as butcher shops and cheese stores, reported higher revenue.
- Sales volume in the food sector decreased by 5 percent.
Non-food Sector:
- Revenue in the non-food sector increased by nearly 8 percent.
- Sales volume in the non-food sector decreased by almost 1 percent.
- DIY stores experienced a significant decline in sales volume (11 percent).
Online Sales Performance
In the first quarter of 2023, online retail sales decreased by over 1 percent compared to the same period last year. Online sales can be divided into two categories: webshops that exclusively sell online and multichannel retailers that operate both online and in physical stores. Retailers operating both online and in physical stores witnessed a 10 percent decline in online sales, while webshops saw a nearly 6 percent increase in online revenue.
Bankruptcies in the Retail Sector
During the first quarter of 2023, a total of 86 bankruptcies were declared in the retail sector. This number is more than double the amount recorded in the same quarter of the previous year. Since the third quarter of 2021, the number of bankruptcies in the retail sector has been consistently increasing for six consecutive quarters.
Price Expectations
According to the Business Cycle Survey of the Netherlands (COEN), which assesses business performance and expectations, retailers expressed a slightly negative outlook for the economic climate in the coming three months at the beginning of the second quarter of 2023. Approximately 4 percent of retailers expect a deterioration in the economic climate. Furthermore, 28 percent of retailers in the sector anticipate further price increases in the next three months. However, this percentage is considerably lower than in previous quarters.