Switch to mobile version. Top

  • Frontpage
  • Retail data: Is staggering growth expected?

Ekonomiskā vide - 2021 02 02
coronavirus | development forecasts | retail

Retail data: Is staggering growth expected?

Retail data: Is staggering growth expected? Photo: Caleb Lucas, Unsplash

The retail sector’s performance last year was growth. This spring, however, its indicators remain in negative territory. Right now, consumer demand is piling up, so retail growth is expected to be staggering this summer.

The retail sector’s fairly successful and rapid recovery has been hampered by renewed restrictions. In December, industry sales were already down 4.4%.

Especially non-food products are affected by the new requirements. So it could have been expected that sales in this segment declined by 13.1 %, while food retail sales grew by 3.4%..

The year ended with growth

Regardless of periods of decline, the industry managed to grow by 1.5% last year. This was mainly due to a 3.5% increase in food sales. Conversely, non-food sales fell by 1.9%.

The sector will continue to perform poorly in January and February, mainly due to restrictions imposed on non-food purchases. Food sales will continue to rise.

It is very likely that there will be a slight easing of the requirements in March, with the situation levelling off between segments. However, this will be driven by the epidemiological situation in the country.

Expect an explosion

At worst, the restrictions might last longer. The negative outcome has nothing to do with demand, but with the restrictions on the supply side. It is clear, then, that once the restrictions are lifted, we can expect a sharp increase in private consumption, as restrained consumption is unleashed.

As a result, we could see a staggering rise in retail sales over the summer months. This will certainly continue into the fall, when the need for new restrictions will resurface.

Consumption will be further supported by further wage growth and improved sentiment due to vaccination.

Dainis Gašpuitis
Economist at SEB

  • Uzņēmējiem - 2021 02 01

    E-commerce breakthrough – will we be buying bricks online in the future?

    E-commerce breakthrough – will we be buying bricks online in the future?

    Covid-19 background has driven business e-commerce growth in 2020, given a chance to thoroughly recover and reach unprecedented indicators both in Latvia and across the Baltic region. Those who previously used digital solutions are now enjoying the growth. In addition, more and more companies are seizing the opportunity to transform. Nevertheless, some significant business challenges will slow down the upward curve. Without identifying them in time, the growth of e-commerce could be just a short-term leap.

    Read more

  • Uzņēmējiem - 2021 01 29

    Environmentally friendly parcel delivery – the DPD Latvija experience

    Environmentally friendly parcel delivery – the DPD Latvija experience

    Every decision we make affects the environment and leaves a significant footprint in the long run. To minimise the negative impact, knowledge and proactive action are key to making sustainable choices today. One of the companies currently implementing green and sustainable solutions in its routine is the parcel delivery company DPD Latvija.

    Read more


Veel samal teemal

Archive

Contacts

  • +371 26668777
    +371 67779988

    Block payment card and internet bank

    24/7

    Other questions

    Private customers

    Mon - Fri 08.00 - 21.00
    Sat, Sun and holidays 10.00 - 18.00

    Business customers

    Mon - Fri 08.30 - 18.00

S|E|B

Uzmanību! Jūsu pārlūkprogramma neatbilst SEB mājas lapas prasībām, lūdzu, atjaunojiet to vai izmantojiet citu ierīci lapas aplūkošanai.

Attention! Your web browser does not correspond to the requirements needed to visit SEB website. Please change web browser or device that you use for browsing the site.

Внимание! Ваш браузер не отвечает требованиям, необходимым для посещения сайта SEB. Просим поменять браузер или устройство, при помощи которого вы производите поиск в браузере.