Czech Republic enjoys 6% growth in retail sales

With new figures recently released, retail sales hit heights last achieved in 2008 and saw a 6% increase when compared to the previous year. The Czech Statistical Office announced the news that will be good reading for a country that suffered dearly at the hands of the long-lasting recession. Online sales saw the biggest improvement with mail order outlets coming in closely behind. December proved to be the biggest month of the year with a whopping 17% increase from the year before; a number that is twice as high as in 2010.

Petr Dufek, CSOB bank analytic, said “We can talk about record Christmas sales for large part of Czech retailers, especially for internet shops, and retailers of electronic goods and household equipment.”

The falling cost of fuel proved to be one reason why retail sales increased as people suddenly had more disposable income. Oil prices fell all around the world which led to an 8% increase in sales of fuel, including a 13% increase in December; consumers were also able to spend money elsewhere which is a trend that is likely to continue. In addition to this, sales as well as the repairing of motor vehicles both increased by around 10%

Jakub Seidler, ING analyst, has said “Czechs are willing to spend more mainly thanks to a favourable development on the jobs market. The country’s unemployment rate has fallen throughout the whole year, reaching one of the lowest levels in the EU.” He also stated that as a result of a decrease in costs, companies were also willing to increase wages for their employees leading to even more disposable income.

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