Q4 2016 retail sales end nine-quarter slump

The value of retail sales during the fourth quarter of 2016 increased by 1.1 percent year-on-year to MOP15.89 billion, according to information released yesterday by the Statistics and Census Bureau (DSEC). The increase was attributed to a rebound in visitor spending and the Christmas holiday. This marks the first year-on- year quarterly growth since the second quarter of 2014 and as such, ends a nine-quarter downturn.

The value of retail sales during the fourth quarter rose by 16.2 percent from the revised amount of MOP13.67 billion in the third quarter of 2016. The month-on-month elevation was led by sales in the DSEC category of “watches, clocks and jewelry”, which accounted for 21 percent of total sales value, followed by “goods in department stores” (15.1 percent), “adults’ clothing” (13.2 percent) and “leather goods” (11.5 percent).

A statement from DSEC reads that the volume of retail sales during the fourth quarter increased marginally by 0.1 percent year-on-year, while it increased by more than 15 percent in comparison to the third quarter.

Despite the growth measured in the most recent complete quarter, the total value of retail sales for the year of 2016 remained down by 6.6 percent, at some MOP57.5 billion, compared to the previous year’s figures,.

Likewise, the volume of retail sales for the whole year dropped by 5.5 percent year- on-year, led by a decline in the DSEC categories of “motor vehicles” (-48.7 percent), “motorcycles, parts and accessories” (-38.3 percent) and “watches, clocks and jewelry” (-14.1 percent).

A snapshot survey conducted by DSEC at the time shows that almost half of all retailers anticipated last year that the sales volume during the first quarter of 2017 would remain stable compared to the first quarter of 2016 when it dropped. About 46 percent of respondents forecasted a year-on-year decrease, while just 4 percent expected an increase.