Sales in the retail sector last month decreased 2.9 percent year-on-year to NT$390 billion (US$13.3 billion), government data released yesterday showed, as consumers remained cautious amid lingering uncertainty over US tariff policy and local currency volatility.
Last month’s decrease was the third consecutive month of declines, data released by the Ministry of Economic Affairs showed.
However, it met the ministry’s forecast of an annual decrease of 0.4 to 3.4 percent, with sales expected to be between NT$387.6 billion and NT$399.7 billion.
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The weakness was mainly driven by a decline in vehicle sales, as the delivery of some imported vehicles was delayed due to customers awaiting the outcome of Taiwan’s tariff negotiations with the US.
Sales of cars, motorcycles, auto parts and accessories fell 17.3 percent year-on-year to NT$71.6 billion last month, the ministry said in a report.
In addition, fewer holidays last month led to a 6.3 percent decrease in fabric and clothing sales to NT$26.4 billion, while some department stores were remodeling their floors, resulting in a 3.6 percent sales decline to NT$31.9 billion, the report said.
However, healthy spending continued at e-commerce sites, supermarkets, convenience stores, hypermarkets, and information and communications device stores, it said.
Overall, retail sales in the second quarter fell 1.6 percent year-on-year to NT$1.17 trillion and were down 0.4 percent to NT$2.37 trillion in the first half of this year from the same period last year, ministry data showed.
The report also revealed that sales in the food and beverage sector last month dropped 2 percent annually to NT$85.3 billion, ending three consecutive months of increases and missing the ministry’s forecast of an annual increase of 1.2 to 4.2 percent, which ranged from NT$88 billion to NT$90.7 billion.
The ministry attributed this decline to a 3.6 percent drop in restaurant sales to NT$67.5 billion due to a high comparison base last year and some businesses temporarily suspending operations for renovations.
Yet consumers did not cut spending on beverages, with sales rising 2.6 percent to NT$11.5 billion, while robust demand for in-flight meals amid a travel boom also contributed to an 8.4 percent sales increase for catering service providers, reaching NT$6.2 billion, the report said.
Food and beverage sales rose 2.2 percent year-on-year to NT$257.2 billion in the second quarter, a record for the same period, and increased 3 percent to NT$531.4 billion in the first half of the year, also a record high, it said.
For this month, the ministry projected that retail sales would show an annual decline of 2 percent to an annual increase of 1 percent, reaching NT$394.9 billion to NT$406.9 billion, while food and beverage sales are expected to grow 1.3 to 4.3 percent to NT$85.9 billion to NT$88.4 billion.
When Lika Megreladze was a child, life in her native western Georgian region of Guria revolved around tea. Her mother worked for decades as a scientist at the Soviet Union’s Institute of Tea and Subtropical Crops in the village of Anaseuli, Georgia, perfecting cultivation methods for a Georgian tea industry that supplied the bulk of the vast communist state’s brews. “When I was a child, this was only my mum’s workplace. Only later I realized that it was something big,” she said. Now, the institute lies abandoned. Yellowed papers are strewn around its decaying corridors, and a statue of Soviet founder Vladimir Lenin
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