Retail Industry Report – June 2023: Mixed Performance Amidst Challenges

June 2023 witnessed a mixed performance in the retail industry, as sales experienced a slight downturn with a 0.2% decline in value and a 0.7% decrease in volume. The decline was driven by non-food items, which faced challenges with a 0.7% drop in value and 0.9% decrease in volume. However, food sales showed resilience, with a 0.3% increase in value despite a minor 0.2% decline in volume.

For the entire second quarter of 2023, there was an overall increase in retail sales value, rising by 0.4%. Nevertheless, sales volume saw a modest 0.9% decrease during the same period. The growth in value was mainly influenced by a 1.1% increase in food sales, although volume for food items also decreased by 0.9%. In contrast, non-food sales faced challenges, with both value and volume declining by 0.1% and 0.9%, respectively.

Looking at the bigger picture, retail sales in June 2023 exhibited positive year-on-year growth, with sales value rising by 3.6%. However, there was a corresponding 3.5% decline in sales volume. This trend was consistent across both food and non-food items, showing an increase of 6.8% and 1.1% in sales value, respectively, but a drop of 3.8% and 3.2% in sales volume.

Among non-food items, certain product categories fared differently compared to the previous year. Perfumery and Personal Care Products witnessed significant growth with a 9.1% increase, while Appliances, Radios, TVs, and Recorders experienced a notable decline of 3.4%.

Analyzing the retail landscape by distribution channels, retail sales value increased for large-scale retailers (6.8%), small surface businesses (1.2%), and sales outside physical stores (1.6%) compared to June 2022. However, e-commerce faced a challenge with a 3.6% decrease in sales value.

The retail industry in June 2023 faced a slight downturn primarily due to non-food items’ performance. While overall sales value saw growth, sales volume proved challenging. The year-on-year trends reflect a continuing pattern of increased value but decreased volume, posing both opportunities and obstacles for the retail sector.