In a promising sign for the Czech economy, retail sales have shown a consistent upward trend, marking the ninth consecutive month of year-on-year growth. August saw a notable 5.3% increase compared to the previous year, slightly outpacing July’s revised 4.9% growth. However, economists caution that consumers are still treading carefully, with month-on-month spending only inching up by 0.1%.
The Czech Statistical Office reports that August’s growth was driven by various sectors. Non-food items saw a 7.2% increase, while fuel sales surged by 9.3%. Food sales, however, showed a more modest growth of 1.6%. Jana Gotvaldová, head of the trade, transport, and services statistics department, highlighted that fuel retailers and online stores were the primary contributors to the overall retail growth.
E-commerce emerges as a clear winner in this retail landscape. Online stores experienced a remarkable 16.1% growth, nearly matching the 16.8% increase seen in non-specialized stores with a predominance of non-food goods. Petr Dufek, chief economist at Banka Creditas, notes that e-commerce is booming, with real sales approaching the record levels seen during the lockdown in March 2021.
Despite the overall positive trend, some sectors continue to struggle. Clothing and footwear stores, while benefiting from significant price increases, still report lower real sales compared to pre-COVID levels. Interestingly, cosmetics stores are thriving, with real sales nearly a third higher than in 2019.
Economists remain cautiously optimistic about the future of Czech retail. Vít Hradil, chief economist at Cyrrus, attributes the recovery in household consumption to rising real wages and persistently low unemployment. However, he notes that consumers are not yet dipping significantly into savings accumulated during the crisis period, likely due to ongoing economic uncertainties. Nevertheless, projections suggest that real retail sales could increase by approximately 4.5% for the entire year.