Sales in retail trade, hotels and restaurants - 3. quarter of 2007

Retail trade including the automotive segment

In Q3 2007, seasonally adjusted sales in retail trade including the automotive segment grew by 1.1% quarter-on-quarter at constant prices contributed to by a 1.8% growth in retail trade while in automotive segment sales dropped by 0.3%. The long-term growth of the trend slightly decelerated in Q3 2007. Year-on-year sales increased by 7.5% in total, in the automotive segment by 7.1% and in retail trade by 7.8%.

Not seasonally adjusted sales in retail trade including the automotive segment with the same working time availability as in Q3 2006 increased by 6.8% year-on-year at constant prices. Dynamic growth recorded at the beginning of the year slowed down already in Q2 and in Q3 the slow-down continued.
● Automotive segment (CZ-NACE 50)

The year-on-year sales in the automotive segment grew by 7.0%, however, in the last month of the quarter they almost stagnated. The slow-down came mainly from the sale of automotive fuel which after the recovery in July, when a 7.7% increase was reported, grew only by 4.8% in August and finally dropped in September even by 0.1%. Less favourable development experienced also the sale of motor vehicles, where the sales dramatically increased (17.8%) in July, which was the highest increase over the year, and then slowed down to 1.5% increase.

The development of recorded sales corresponded also with the statistics of first registrations of vehicles (passenger cars, small commercial vehicles. commercial vehicles and public service vehicles) carried out and published by the Automotive Industry Association. In Q3 2007 their growth decelerated mainly due to the registration of used vehicles in September (drop by 11.4%). The total of all registrations over the quarter increased by 7.2% of which new vehicles by 12.3% and used vehicles by 3.2%. In terms of vehicle categories the deceleration of the growth affected mainly passenger cars (growth by 3.9% compared with 18.1% in the previous quarter). Conversely, registration of small commercial vehicles and commercial vehicles increased by 24%.

● Retail trade (CZ-NACE 52)

The year-on-year development of not seasonally adjusted sales in retail trade except of motor vehicles and motorcycles also slowed down moderately to 6.7% compared to the previous quarter; in September the growth showed the lowest value over the year (5.9%). In Q3 sales in enterprises with 50 to 99 employees recorded the most dynamic growth and the slowest growth was reported for small enterprises with up to 20 employees (by 5.0%).

Contribution of sales realized by specialized stores to the total growth decreased slightly, compared to previous quarter, but still remains decisive. As regards assortment the total sales growth was mostly influenced by stores with furniture, electrical appliances and other household goods and stores with books, newspapers and stationery and other retail sale. An increasing influence was reported for retail sale of textiles, clothing and footwear where sales showed the most rapid growth.

Sales in stores with food. beverages and tobacco predominating increased only in size groups of stores with 0 up to 19 employees and in big chain stores with 100+ employees (by 2.4% and 5.1%, respectively); in groups with 20 up to 49 and 50 up to 99 employees sales dropped (by 2.3% and 3.5%. respectively). Food, beverages or tobacco sales grew in Q3 faster compared to the previous period, however, not faster than sales in stores with non-food goods.

Enthusiasm for shopping, which started up highly dynamic sales growth in retail trade at the beginning of the year slightly flagged but the growth in Q3 still shows the above-average level from a long-term-view. Reasons for long-term growing sales in retail trade continue. In addition to the growing purchase power of the population supported by relatively low interest rates for mortgages and affordable consumer credits also an on-going drop of price of non-food goods (especially furniture, electrical appliances and other household goods) belongs to phenomena supporting the sales growth.


Hotels and restaurants (CZ-NACE 55)

In Q3 2007 seasonally adjusted sales in hotels and restaurants decreased by 0.2% quarter-on-quarter at constant prices and the same applies to the trend component.
Not seasonally adjusted sales in hotels and restaurants dropped by 0.4% year-on-year at constant prices following a moderate increase in the previous quarters. Except for August when sales recorded a slight growth (by 1.8%) in the following two months they did not reach the level of the same period in 2006. A decrease was recorded both for accommodation services and catering services (by 0.3% and 0.4%. respectively).

In Q3 2007 the total drop of sales came mainly from small enterprises with 0-19 employees where sales fell compared to the same quarter of the previous year by 2.5%. Other size groups of enterprises recorded a growth, most markedly in the groups with 50 up to 99 employees (+3.6%).