Retail sales to rise slightly in H2, survey shows

Retail sales are expected to rise slightly in the second half of 2018, the Research Institute of Retail Consumer Goods (IELKA) said in a survey.

The survey, conducted in the period from June 20 to July 1 with a sample of 155 senior executives in the retail commerce sector, showed that 31 pct of respondents expected sales to rise, 28 pct expected a decline and 40 pct expected retail sales to remain unchanged. Respondents said they expected retail sales to grow by 0.1 pct in the July-December 2018 period compared with the same period in 2017. The survey showed that 53 pct of respondents think that economic conditions remained unchanged in the country, 31 pct that they have deteriorated and 16 pct see an improvement.

Executives in the retail sector continue to view high VAT rates as the main problem (51 pct), with other problems cited including lower sales, low profitability, changes in consumer habits, increasing competition, etc.

The survey showed that the priorities of enterprises in the retail sector are innovation and investments.