Retail Trade - December 2007

In December, seasonally adjusted sales in retail trade except of automotive segment grew by 0.4%, month-on-month, at constant prices, and by 4.3%, year-on-year, not seasonally adjusted by 3.4%. A slow-down of the growth came mainly from the sale of food. Seasonally adjusted sales increased in automotive segment by 5.4%, month-on-month, by 11.7%, year-on-year and not seasonally adjusted by 10.4%. Seasonally adjusted sales in hotels and restaurants grew both seasonally adjusted (1.3%, m-o-m) and not seasonally adjusted (by 3.3%, year-on-year). Over the whole year 2007 sales in retail trade went up by 6.8%, year-on-year, in automotive segment by 9.6% and in hotels and restaurants by 1.5%
Seasonally adjusted sales in retail trade (CZ-NACE 52) increased in December by 0.4%, month-on-month, at constant prices, of which the non-food goods sales by 0.6% and sales from food, beverages and tobacco by 0.1%. The trend component increased, month-on-month, by 0.3% which was by 0.1 p.p. more than in the previous two months (Table 1).

Graph 1
Year-on-year, after seasonal and working day adjustments (one working day less in December 2007) sales in retail trade except of automotive segment increased by 4.3% at constant prices, with only working day adjustment they increased by 4.2%. Compared with the EU27 average the growth in the CR is qualified as above-the-average, the slow-down of the growth compared to previous months occurred in majority of member states. Not seasonally adjusted sales in the Czech Republic in December recorded the smallest increase from July 2005 (by 3.4%) including sales from non-food goods by 6.8% while sales from food, beverages and tobacco recorded a 1.9% decline.

Broken by size groups of enterprises the biggest growth of sales occurred in enterprises with 50 to 99 employees (by 8.4%). Sales in enterprises with 20 to 49 employees increased by 6.0%, with 0 to 19 employees by 5.2% and with 100+ employees by 0.9%.

In December, the total growth came mostly from other retail sale in specialized stores with books, newspapers and stationary, optical equipment, sports equipment, personal computers, watches, jewellery, toys etc. The second and third biggest contribution to the growth came from specialised stores with electronics, electrical appliances, furniture and other household articles and stores with pharmaceutical and medical goods, cosmetic and toilet articles. The fastest growth recorded sales in retail trade with insignificant contribution to the total growth operated via Internet or mail-order houses. Lower interest of consumers in purchases of food, beverages and tobacco became even more profound compared with previous months. Sales in specialized and non specialized stores with food, beverages and tobacco fell (by 3.6% and 1.7%, respectively) and in the group of stores including chain stores the sales recorded a 2.4% drop (Table 3).

The price deflator (related to the corresponding period of the previous year) was 103.9% (103.8% in November and 102.7% in October). The biggest price increase was recorded in food stores of which in specialized stores by 12.9% and in non-specialized stores by 10.3%. In retail sale via stand sales and other sale operated outside stores prices increased by 5.4%, in non-specialized stores with food, beverages or tobacco predominating by 3.6%, in stores with pharmaceutical and medical goods, cosmetic and toilet articles by 0.4%. In contrast, in sale via mail order houses prices dropped by 1.4%, in stores with other non-food goods by 1.3%, with household articles by 0.9%, with second-hand goods by 0.8% and in stores with textiles, footwear and leather goods by 0.1%.

In December, according to data released by Eurostat, seasonally adjusted constant price retail sales in the EU27 remained unchanged, month-on-month, and, in the year-on-year comparison, dropped by 0.1%, (working days adjusted). Among member states for which data were available, year-on-year sales increases were recorded in Poland (+8.0%), Lithuania (+7.4%), Bulgaria and Slovakia (both +5.2%), Finland (+4.0%), Sweden (+3.9%), the United Kingdom (+2.5%), Slovenia (+2.2%), France (+1.9%), Latvia (+1.7%), Estonia (+0.3%) while in Denmark no changes were recorded. Prices dropped in Belgium (-6.9%), Germany (-6.7%), Spain (-1.8%), Austria (-1.7%), Portugal (-1.5%) and in Luxembourg (-0.8%).
In the automotive segment (CZ-NACE 50), seasonally adjusted sales increased month-on-month at constant prices by 5.4% and 11.7%, year-on-year. Not seasonally adjusted sales increased year-on-year by 10.4%. Good sales were recorded mainly from automotive fuel whose growth by 7.7% was above-the-average from the all year view. Sales from retail sale, maintenance and repair of motor vehicles increased by 11.7% which was by 0.7 p.p. less then the all year average growth.

In retail trade incl. the automotive segment (CZ-NACE 52 + 50), seasonally adjusted sales at constant prices increased by 2.0% month-on-month and year on year by 6.7%. Not seasonally adjusted sales grew by 5.4%, year-on-year.

In hotels and restaurants (CZ-NACE 55) seasonally adjusted sales increased by 1.3% at constant prices month-on-month and not seasonally adjusted sales by 3.3%, year on year. Sales in hotels and camping sites grew in all size groups of enterprises, in total by 5.1%. In restaurants, bars and canteens sales increased by 2.8 % while the drop of sales was recorded only in enterprises with 50 to 99 employees (-0.9%).
Over the whole year 2007 sales in retail trade (CZ-NACE 52) increased, year-on-year, by 6.8% at constant prices which was the biggest growth since 1997. Over the whole year not a single y-o-y sales drop was recorded. Faster growth was recorded for sales in the first half-year compared to the second half year, the biggest increase was recorded in February (+9.9%). Among individual size groups of enterprises the biggest growth-rate was recorded for enterprises with 50 to 99 employees and with 20 to 49 employees (+14.0% and 9.2%, respectively). Sales from non-food goods increased in individual months of 2007 from 6.8% to 13.5%, the yearly average being 9.6%. The growth in sale of food, beverages and tobacco was gradually decreasing over the year from 4.5% in Q1 down to 0.6% in Q4. Stagnation of the food sale in November and its drop in December reflected the price growth.

Sales in the individual assortment types of stores developed as follows:
- sales in non-specialized stores grew by 3.3%, of which in non-specialised stores with non-food goods predominating by 4.3% and in stores with food, beverages or tobacco predominating by 3.0%;

- sales in specialised stores increased by 9.7%, while in stores with non-food goods sales increased by 10.7% and in stores with food, beverages and tobacco by 2.0%;
- in specialised stores with non-food goods sales grew most markedly for clothing, textiles and footwear (+15.7%) and electronic, electrical appliances, hardware, furniture and other household articles (+14.5%). Sales for pharmaceutical and medical goods, cosmetic and toilet articles raised by 8.7% and so called other non-food goods by 8.0%.

- sales were higher in sale via mail order houses (+15.6%), in stores with second-hand goods (7.9%) and in sale via stalls and markets and other non-store retail sale (+4.1%).

In the automotive segment (CZ-NACE 50) growth of sales by 9.6% was contributed to by sale, repair and maintenance of motor vehicles (+12.4%), sale of automotive fuel (+4.9%). Sales from sale and maintenance of motor vehicles increased in 2007 by 10.6% to 18.1% save for September when the increase was only 1.9%. Sale of automotive fuel increased most in March (+13.1%) while in September it dropped below the last year comparable level (-0.7%).

The year-on-year growth of retail sale including the automotive segment (CZ-NACE 50+52) was 7.7% at constant prices.

In hotels and restaurants (CZ-NACE 55) sales increased y-o-y by 1.5% at constant prices, including restaurants, bars and canteens (+1.5%) and hotels and camping sites (+1.4%). Although both segments showed approximately the same development over the year, the development in the first half-year was different from that of the second half-year. Sales in restaurants, bars and canteens were higher in the first half-year (+2.6%), while sales in hotels and camping sites grew fasters in the second half-year (+2.5%).

Analysis - Sales in retail trade, hotels and restaurants in the fourth quarter of 2007

---

Note
1) The whole time series is seasonally adjusted every month; indices in the graph are changed retroactively.

Contact: Alena Hellerová, tel. (+420) 274052921, e-mail: alena.hellerova@csu.gov.cz
Data source: CZSO direct survey in enterprises
End of data collection: 5 February 2008
End of data processing: 8 February 2008
The data for December 2007 are preliminary; final data for all months of 2007 will be available in June 2008 at the latest. Monthly data since 1997 are available in time series ( /sales_indices_monthly_retail_trade_hotels_and_restaurants_time_series )