According to currently available Eurostat data, retail turnover decreased in 13 EU countries in December, while growth was registered in nine of them.

Within the Eurozone, the decrease equalled 3.4 percent, far larger than in Hungary, while the contraction averaged 2 percent within the EU 27. Within the region, Slovenia (-7.5 percent), Bulgaria (-5.5 percent), Slovakia (-4.0 percent) and Romania (-3.3 percent) underperformed compared to Hungary.  In comparison to the corresponding period of the previous year only data from Poland was better than Hungary’s, but their growth was also negative (-0.7 percent).

In 2012, according to the Central Statistical Office (KSH), Hungarian retail sales of foods, beverages and tobacco products declined only by 0.7 percent year-on-year in an adverse economic climate. In December, this retail sector registered a slightly larger decrease of 2.7 percent in comparison to the corresponding period of the previous year (2011). Year-on-year sales of pharmaceutical and medical products, cosmetics articles and second-hand goods as well as turnover at mail order service providers continued to increase and, contrary to November tendencies, the retail volume of foods, beverages and tobacco products, and sales in non-specialized stores were also up in December.

In December, the year-on-year decrease of 2.1 percent in retail turnover was mainly due to lower sales at stores selling food, beverages and tobacco products, filling stations, and of furniture and electrical goods, books, computer and other non-specialized goods. Retail turnover totalled HUF 835bn in December 2012, while for the entire year of 2012 this figure was HUF 8 257bn in the domestic retail network as well as at mail order and online retail services providers.
Sales of food, beverages and tobacco products, which constitute 47 percent of total volume, were down by 2.7 percent in December year-on-year, whereas for the entire year retail sales registered a decrease of only 0.7 percent.
Retail sales decreases at non-food stores varied from 7.7 percent in November to 2.3 percent in December, which corresponds to an average annual decrease of 3 percent. Mail order and online retail service providers continued to generate dynamically increasing sales; in December the increase in sales volume of this sub-sector was 33 percent – exceeding that of November – compared to the same period of the previous year. Sales volumes were also higher in the case of cosmetics articles (+5.2 percent), second-hand goods (+11 percent) and pharmaceutical and medical products (+5.2 percent).
With regard to sales of non-food products in 2012, the aforementioned sub-sectors realised a positive performance (except for pharmaceutical and medical products), but sales of textile goods, clothing and footwear were also up, while those of non-specialised goods decreased slightly.
Sales at filling stations continued to be below those of the corresponding period of the previous year. In December, sales were down by 1.4 percent, while for the entire year of 2012 they declined by 2.6 percent.
Negative retail statistics continue to be the consequence of external market conditions, reductions in high domestic debt and the cautious attitude of households. The economic research institute GKI consumer confidence index, on the other hand, has been improving steadily since November 2012 and in January 2013 this indicator reached a one-and-a-half-year high, which gives reason for optimism with regard to the future.

(Ministry of National Economy)