Retail sales slow to 11% yoy growth in 1Q20

Ukraine retail sales advanced 10.6 % yoy in real terms
in 1Q20, slowing from 13.5% yoy in 2M20, Ukraine’s State Statistics Service
reported on Apr. 21. In March, retail advanced 6.1% yoy (vs. 15.7% yoy growth
in February) and 4.4% m/m in real terms.

Regionally, the highest retail growth in 1Q20 occurred
in the Kyiv (15.3% yoy), Dnipropetrovsk (15.0% yoy), and Kharkiv (14.9% yoy)
regions. It was slowest in the Zakarpattia (-2.1% yoy), Chernivtsi (0.7% yoy),
and Ukraine-controlled Luhansk (5.9% yoy) regions.

Evgeniya Akhtyrko:  The
weaker retail growth in March was expected given the harsh quarantine measures introduced by Ukraine’s government
starting March 18. This included the lockdown of most
non-food retail stores. The restrictions on public transportation also impacted
consumer activity. 

The early statistics show that the quarantine
impact on Ukraine’s retail sector hasn’t been devastating. Like everywhere,
quarantine measures caused increased demand for food and some household items.
In addition, the consumption pattern of Ukrainians is skewed towards food, so
the lockdown of non-food retail stores has had a lesser effect on retail
indicators.