Retail sales last month fell 2.2 percent year-on-year to NT$393.8 billion (US$12.78 billion) as consumers were cautious over spending amid economic uncertainty and seasonal weakness during Ghost Month, data released yesterday by the Ministry of Economic Affairs showed.
Last month’s sales decline followed a 0.4 percent annual increase in the previous month, but met the ministry’s forecast, which projected that retail sales would drop 2.2 to 5.2 percent from a year earlier.
Excluding sales of motor vehicles and parts, which plunged 17.2 percent last month as people halted purchases of big-ticket items during Ghost Month from Aug. 23 to Sept. 21, retail sales rose 1.3 percent from a year earlier, the ministry said in a report.
Photo courtesy of Lihpao Outlet Mall
Consumer spending remained steady at department stores, supermarkets and convenience stores, and there were large sales gains at e-commerce sites, electronics stores and home appliance outlets last month, the data showed.
However, transactions fell at hypermarkets, fuel stations, cosmetics shops, clothing and accessories vendors, jewelry stores, and furniture and home furnishing retailers, the ministry said.
In the third quarter, retail sales decreased 1.8 percent year-on-year to NT$1.17 trillion, with total sales in the first nine months of the year down 0.9 percent annually to NT$3.54 trillion, it said.
Meanwhile, food and beverage sales last month fell 0.9 percent annually to NT$83.5 billion, with sales at restaurants declining 3.3 percent due to fewer wedding banquets amid Ghost Month and not as many holiday gatherings as in the same month last year, the ministry said.
Sales grew at beverage stores and catering service providers, up 10.5 percent and 6.7 percent from a year earlier respectively, it said.
Food and beverage sales in the third quarter increased 2.1 percent year-on-year to NT$263.4 billion, with sales in the first nine months rising 2.7 percent to NT$794.8 billion compared with the same period last year, it said.
While people are generally conservative about spending on luxury and durable goods, overall consumption remains stable, the ministry said, adding that the universal cash handouts of NT$10,000 at the end of the year could help boost spending.
The ministry expects the retail, and food and beverage sectors to record year-on-year sales growth this month, thanks to department store anniversary sales, as well as increased travel, shopping and dining opportunities during the Mid-Autumn Festival, Double Ten National Day and Retrocession Day holidays.
A reduction in the commodity tax on new cars and motorcycles, as well as promotions by car dealers, are also expected to help motor vehicle sales recover, it said.
Retail sales this month are expected to grow 1 to 4 percent from a year earlier to between NT$414.9 billion and NT$427.2 billion, while food and beverage sales would increase 3 to 6 percent to between NT$84.4 billion and NT$86.9 billion, if an African swine fever incident in Taichung remains under control, the ministry said.
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