Romania’s retail sales boast strongest growth in Europe again

Romania’s retail sales boast strongest growth in Europe again
By Iulian Ernst in Bucharest September 4, 2020

Retail sales in Romania rose by 4.8% y/y in July when they nearly reached pre-crisis levels, according to the latest data from the statistics office INS.

The 3.9% annual growth rate adjusted for workdays and seasonality was the strongest in the European Union (EU), Eurostat reported. For comparison, EU members posted a 0.8% average annual decline in retail sales.

Retail sales dropped even more, by 1.3% in annual terms, in the euro area, where the share of discretionary spending, more elastic to consumer confidence, is higher.

In July, the seasonally-adjusted sales in Romania were 2.6% below the pre-crisis benchmark (February) as the tourism sector's incomplete reopening dragged down car fuel sales by 10.5%.

Food sales were also 2.6% below the February benchmark, but the non-food sales were 3.9% higher in July compared to the pre-crisis level.

In annual terms, overall retail sales accelerated (from +2.9% y/y in June), driven by the double-digit (+10.7%) advance of the non-food sales.

Notably, online sales (included in non-food sales by the statistics office, although this might not be the case all the time) surged by 48% y/y in July, making a significant contribution to the overall growth.

It is worth noting that the online sales, seasonally adjusted, have not declined after the lockdown period, but maintained their growth pattern.

Food sales increased by only 4.3% y/y in July while fuel sales were down 3.7%. From a broader perspective, the retail sales in Romania in the first seven months of the year increased by 1.2% compared to the same period of 2019, versus an average annual growth rate of 2.8% projected by Banca Transilvania for the 2020-2022 period.

Data

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