Retail trade turnover in food stores grew by 9% YoY in January. This includes a 5.8% increase in non-specialized stores and 62.2% in specialized stores, according to information from Maxima retail compass industry review.
2018 commenced with increased growth rate for retail trade sector (except for retail trade of fuel) when compared with the years before. This happened mostly thanks to a larger than previously expected increase of retail trade of non-food products, as well as continued development of specialized food and beverage stores. Total retail trade in actual prices grew by 8.8% in January, as noted by Maxima.
“According to estimates from Finance Ministry, powerful economic growth will continue in 2018. This also means continued growth of wages. Wage growth, as well as reduced PIT and changes added the pension indexation can provide residents the ability to spend more money,” says Maxima Latvia Business Analysis Department’s Director Zane Kaktina.
She also notes that inflation may yet negatively impact residents’ purchasing power (2.7-2.8%).
People’s growing income was the main factor that affected retail trade growth in 2017.
“The study performed by Maxima Latvia and SKDS shows that the number of residents able to spend more money had grown in 2017. Still, many people have also noticed price rise. This has affected their shopping habits,” says Kaktina. (BNN/Business World Magazine)
