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April 21, 2024
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Economy Romanian News

Romania’s Stores Sales Grew by Only 2.5% in 2022

Romania’s store sales increased by only 2.5% in 2022, despite an average price increase of more than 16%. This suggests a sharp decline in sales volume, which is more severe in the food sector.

According to the National Institute of Statistics (INS), retail receipts grew as a gross series after the first seven months of 2022 compared to July 2021 by +2.5%. Because prices in this category rose 14.9% on average, but by more than 16% in the food industry, the evolution is weak.

Photo source: INS

Grocery shop receipts in July were only 3% higher than in the same month last year, indicating a volume sales loss of more than 10%. Compared to July 2021, non-food retailers’ receipts climbed by only 1.4%, but the cost of clothing and footwear rose by more than 5% and 6%, respectively.

Fuel prices have increased by more than 35% over the past year, yet gas station receipts only increased by 3.7% in July. However, in addition to selling fuels, gas stations also offer other goods, so the ratio of prices to total receipts reported by official data is not a reliable indicator of how much the adequate volume of gasoline and diesel has decreased.

Despite the price rise, are sales in Romanian stores rising? Not quite. Despite a gain of almost 2.5%, Romania is experiencing rising inflation. Therefore any ostensible increase during this time cannot be viewed as a profit. The National Bank of Romania has issued a warning against the potential effects of rising inflation on the national economy, effects that are particularly evident in the commerce sector.

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