Sales in the retail sector last month declined by 0.5 percent from a year earlier to NT$410.9 billion (US$12.65 billion), compared with an annual increase of 3.2 percent the previous month, the Ministry of Economic Affairs said yesterday.
Last month’s decline missed the ministry’s estimate of growth between 1.7 percent and 4.7 percent for retail sales and ended 37 consecutive months of increases on an annual basis.
The ministry attributed the decline mainly to the landfall of two typhoons, which resulted in annual declines of 7.9 percent in sales at automobile vendors, 3.9 percent at department stores and 2.1 percent at apparel shops, while falling oil prices led sales at gas stations to drop 10.2 percent from a year earlier.
Photo: CNA
A high comparison base last year was also a factor behind the annual fall in retail sales last month, it added.
However, cumulative sales in the first 10 months of the year totaled NT$3.98 trillion, up 2.6 percent from a year earlier and marking the highest level for the same period on record, the ministry said.
For this month, the ministry expects sales in the sector to return to annual growth thanks to the Double 11 Singles’ Day online shopping festival, seasonal demand for clothing and related products and businesses’ promotional offers in conjunction with international events, it said in a report.
Meanwhile, sales in the food and beverage sector fell 1.8 percent year-on-year to NT$81.9 billion last month, also missing the ministry’s expectation of an increase between 0.4 percent and 3.4 percent on an annual basis.
The lower-than-expected showing came as restaurants sales declined 3.3 percent from a year earlier, affected by Typhoon Krathon earlier last month and Typhoon Kong-rey at the end of the month, while the number of holidays in the month was fewer than that in the same month last year, the ministry said.
In the first 10 months of this year, food and beverage sales rose 3.1 percent year-on-year to NT$855.8 billion, the highest ever for the same period, it said.
The ministry expects the sector’s sales to register annual growth this month as a drop in temperatures would drive demand for warm food and beverages, and as store operators launch special meals and promotions in conjunction with baseball games.
Overall, the ministry forecast retail sales to be between NT$425.8 billion and NT$438.7 billion this month, representing a decline of 1 percent to an increase of 2 percent on an annual basis, while food and beverage sales are projected to climb 0.5 percent to 3.5 percent year-on-year to between NT$80.1 billion and NT$82.4 billion, it added.
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