BUSINESS

Corporate officials see sales drop

TAGS: Economy

Retail commerce has experienced an annual decline of 2.12 percent on average in the first half of the year, according to the views of 166 senior corporate officials polled by the Research Institute of Retail Consumer Goods (IELKA).

The survey has also found that the respondents’ estimates converge on the decline in sales continuing in the latter half of the year as well. More than two-thirds (68 percent) said sales will likely drop in the July-December period on a yearly basis, while 19 percent expect no change and 13 percent anticipate a rise.

Their concerns are mostly affected by macroeconomic developments in the country and show that uncertainty as well as high taxation are having a major impact on consumer sentiment. Their main problem is financial uncertainty, which has altered consumer habits, followed by the issue of reduced sales, high value-added tax rates, high operating costs and low profits.

The vast majority of officials that took part in the survey – almost 81 percent – believe that the financial situation has deteriorated in the January-June 2017 period; 16 percent thought the situation remained unchanged and about 4 percent detected an improvement.

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