ECONOMY

Supermarkets expect small increase in sales

supermarkets-expect-small-increase-in-sales

Supermarket sector officials are anticipating an average turnover increase of 0.5 percent year-on-year over the first six months of 2019, based on developments in the retail domain and expectations of capitalization in sales and profit terms following the mergers and acquisitions of recent years, according to a survey by the Research Institute of Retail Consumer Goods (IELKA).

The expansion prospects are not based on any improvement in consumer spending or regarding the economy and politics; in fact, social, political and economic uncertainty ranks as the main problem for 59 percent of the sector’s officials, as 2019 will be an election year and has started with relentless political developments.

The survey, conducted between January 15 and 26, showed for a third consecutive six-month period that a growing share of respondents (33 percent) expect to see an increase in sales volume. Another 21 percent expect a reduction in sales, while 46 percent foresee no change.

However, when it comes to assessing the financial state of the country, there is complete balance between those who have observed an improvement and those who have seen a deterioration in recent months (24 percent each way), with 52 percent saying they haven’t noticed any change.