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Store sales fell, but profits increased as prices rose

The retail sector experienced a decline in sales in the third quarter of this year, but sales still increased. According to the Dutch Bureau of Statistics (CBS), retail income has increased by an average of 4% per year. Meanwhile, sales volume he fell by 4%. The majority of retailers expect further price increases in the near future.

In the food division, revenues were clearly down, with sales down about 8% and sales down 3%. Specialty stores such as butchers and cheese shops have also had to contend with lower sales. However, such companies were able to keep their sales roughly flat compared to the previous year. Specialty stores have been known to grow in popularity since the coronavirus pandemic, especially when the hospitality industry had to close its doors due to national restrictions.

Supermarkets have shown higher conversion rates, but big grocery stores have also had to contend with declining sales volumes. The increase in sales was due to higher prices.

Both drugstores and clothing and footwear stores increased sales and volume. However, the overall picture of the non-food sector is he one of the decline in sales volume. A furniture store, a do-it-yourself store and a store that sells home appliances, he is one, although sales were lower than in the previous year. Sales volumes at these branches also declined. In furniture stores, sales volume he fell 17%.

Online retail sales increased 3% year-over-year, despite a decline in the first half. Just like specialty stores, online stores have clearly sold more during the coronavirus pandemic, and both companies were able to maintain high sales volumes in his first half of 2021. This means that the comparison to the first half of the year is somewhat flawed.

According to the Dutch Statistics Office, 47 bankruptcies were declared in the retail sector in the third quarter of this year. That’s more than double what he did the year before, when he had 19 bankruptcies. The number of bankruptcies is lower than in the same period before the coronavirus pandemic.

Retailers accounted for about 10% of total bankruptcies in the third quarter.

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