Communication equipment leads retail sales increase in 1H

[Photo: Renato Marques]

The retail trade sector posted a 17.2% year-over-year increase in sales value in the first half (1H) of this year, according to a survey by the Statistics and Census Service (DSEC).

According to the same survey, sales reached MOP39.40 billion, led by significant growth in the sales value of Communication Equipment (+88.6%).

Sales values for Watches, Clocks & Jewelry (+45.7%) and Cosmetics & Sanitary Articles (+31.5%) also rose significantly.

On the other hand, sales values for Department Stores and Supermarkets fell by 8.5% and 6.5%, respectively.

Meanwhile, the average sales volume index rose 11% year-over-year in 1H, with marked increases in the indices for Communication Equipment (+85.2%) and Cosmetics & Sanitary Articles (+32.9%).

The drops in sales values recorded by Department Stores were also reflected in their sales volume indices, which recorded a drop of 9.7%. At the same time, Automotive Fuels also recorded a decrease of 7.1%.

1H and Q2 show similar trends

1H results followed the trend seen in the second quarter (Q2), with retail sales totaling MOP17.96 billion between April and June, up 12.1% year-over-year.

As in 1H, the sales value of Communication Equipment led the surge, with an 84.1% increase year-over-year, while the sales values of Watches, Clocks & Jewelry and Cosmetics & Sanitary Articles increased by 38.6% and 35.5%, respectively.

By contrast, sales values in Department Stores dropped by 18.6%, while those of Pharmacies also fell by 9.4%.

DSEC noted that, after removing the effect of prices, the sales volume index rose by 6.2% in Q2, with the sales volume indices of Communication Equipment (+80.1%) and Cosmetics & Sanitary Articles (+37.0%) increasing notably.

As in 1H, the indices of Department Stores (-20.2%) and Automotive Fuels (-10.6%) dropped more significantly.

Majority of retailers not optimistic

A survey conducted by the DSEC shows that a large majority of retailers were not very optimistic about their expectations for the upcoming quarter (Q3), with 49.5% expecting sales volume to remain stable year-over-year and 46.5% anticipating a decrease.

Only 4.5% of the retailers interviewed forecast an increase in sales for the summer period. Compared with previous surveys of the same retailers, fewer retailers are forecasting a favorable outlook, while the share predicting stabilization has increased.