Weak December for retail in euro area | RetailDetail

Weak December for retail in euro area

Weak December for retail in euro area

Retail trade in the euro area has dropped 1.6 % in December compared to the month before. The Belgian drop was even higher, with - 1.9 %: it seems the holiday bonuses went straight into the bank accounts.

Unexpectedly harsh drop

The sales drop was much harsher than economists had expected, which was a ‘mere’ 0.7 % drop. The bad December figures are in line with the lower than expected numbers from November, when retail trade only grew 0.9 % in November, when a 1.4 % growth had been expected.

 

On a yearly basis, Germany suffered the biggest drop (- 2.4 %), before Belgium (- 1.9 %) and Finland (- 1.3 %). Luxembourg had the strongest surge (+ 9 %). There were no specific numbers available for the Dutch retail market.

 

Belgians hoard money

It is no surprise that retail trade dropped nearly 2 % in December compared to the year before: the Belgian National Bank had announced that Belgians had accumulated 249.8 billion euro in their bank accounts, nearly 3 billion euro higher than in November.

 

Holiday bonuses undoubtedly had something to do with that, as people put those aside for the future. November marked the first time since April 2012 that we had saved less (500 million euro less than in October) and when banks were drafting up the 2013 numbers, they noted that Belgians had started to put less money aside. Unfortunately for retail that was not the case for holiday bonuses - and every euro in the bank is a euro not spent in a store.

Questions or comments? Please feel free to contact the editors


Smyths Toys acquires Toys ‘R’ Us in Central Europe

23/04/2018

Irish Smyths Toys has announced a deal with bankrupt toys giant Toys ‘R’ Us to take over all of its 93 stores in Germany, Austria and Switzerland. Financial details about the deal were not disclosed.

Stop overregulation blocking retailers delivering value for consumers

20/04/2018

(content provided by EuroCommerce) In an initial response to the Commission Communication: A European retail sector fit for the 21st century, published today, EuroCommerce approves of the Commission's stance against overregulation.

The Future Of Shopping wins Management Book of the Year award

20/04/2018

RetailDetail can proudly announce that “The Future of Shopping: Waar iedereen retailer is” (The Future of Shopping: where everyone is a retailer), written by Pauline Neerman and Jorg Snoeck, is 2018’s management book of the year.

100 million Prime subscribers for Amazon

19/04/2018

Ecommerce giant Amazon surpassed the 100 million Prime subscriber mark, just one of the many milestones CEO Jeff Bezos mentioned in his annual shareholder briefing.

Distributors and transport industry demand cleaner trucks

19/04/2018

35 companies, including Colruyt, Carrefour and Ikea have asked Europe to force truck manufacturers to lower their emissions 25 % by 2025. “Totally unrealistic”, the manufacturers’ spokesperson said.

JD.com to launch 1,000 stores per day

17/04/2018

JD.com has announced plans to open some 1,000 convenience stores per day across China. With this impressive target, the country’s second-largest e-commerce company is giving speed to its ambitions of expanding into the offline market.