The economic crisis and so-called shopping tourism led to a decrease in retail revenues in June of 11.3 percent year-on-year, according to the Slovak Statistics Office report on August 4.
However, analysts say this trend could turn around in the coming months. Revenues decreased less in June than in May, when their y-o-y drop was 12.3 percent. Shopping tourism carried on apace in both months and was therefore less of a factor than rising unemployment and the continuing drop in spending of the households affected most, according to UniCredit Bank analyst Dávid Dereník. He added that businessmen consider falling demand to be their main obstacle.
ING Bank analyst Eduard Hagara said that the strengthening of the currencies of neighbouring countries could be bringing people back into Slovak shops and will slow the fall in revenues. According to Dereník, rising fuel prices and cross-border competition among chain stores could contribute to better retail results. High unemployment and the gradual thinning of savings will work the other way, however, said Dereík. The Statistics Office reported that total retail revenues amounted to €1.44 billion in June, and added that this result was influenced mainly by revenues in stores specialising in household goods falling by 26.6 percent. "A decrease of revenues in speciality stores is logical during a crisis, because people go shopping in big chain stores that attract customers with various discounts," Dereník told the TASR newswire.
Compiled by Zuzana Vilikovská from press reports
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