Retail sales statistics for November indicate that this Christmas was a rich one. Consumers are not afraid to spend, and to do so they also use one-off offers such as Black Friday. People shop at specialised stores but consumers increasingly look for suitable goods on the Internet, as well.
Statistics for retail trade (excluding cars) for November exceed the market expectations. In the month before Christmas, sales for goods and services increased 7.8% yoy, corresponding with a considerable 3.1% mom after seasonal adjustment.
November provided no advantage of additional working days, so the higher sales are the result of increasing income and higher consumer confidence in the domestic economy. Retail sales (ex auto) were influenced by upcoming Christmas as well as Black Friday. This day, in which merchants tempt consumers with exceptional discounts, is becoming increasingly popular.
People mainly bought expendable goods of nonfood character that increased more than 10% yoy. They spend mostly on electronics, electrical appliances and apparel at specialised stores. Traditionally, the dynamics of online shopping are prime by growing nearly a quarter in yoy terms. The demand for recreation and thus related expenditures increased, as well. Everything suggests this Christmas was worth more than ever before.
According to our outlook, retailers will continue to do well in the upcoming period. Growing wages and a very favorable situation for employees on the labour market boost consumer confidence. This is reflected in households’ appetite to spend also on expendable goods. On average, last year will be prosperous with a retail sales increase of 5.5% over 2016. This year will also be successful with ongoing positive trends and retail sales increasing another 6.4%.