Ukraine retail sales slow to 3% yoy growth in 4M20
Ukraine retail sales advanced 3.2% yoy in real terms in 4M20, slowing significantly from 10.6% yoy growth in 1Q20, Ukraine’s State Statistics Service reported on May 21. In April, retail sales plummeted 14.9% yoy (vs. 6.1% yoy growth in March) and 23.0% m/m in real terms.
Regionally, the highest retail growth in 4M20 occurred in the Kyiv (10.5% yoy), Zaporizhzhia (9.8% yoy), and Dnipropetrovsk (8.6% yoy) regions. The major outsiders were Zakarpattia (-11.5% yoy), Chernivtsi (-9.9% yoy), and Ukraine-controlled Luhansk (-5.2% yoy) regions.
Evgeniya Akhtyrko: A retail downfall in April was expected as the previous month fully absorbed all the negatives related to quarantine restrictions in Ukraine, which included the lockdown of most non-food retail stores. The restrictions on public transportation also impacted consumer activity.
April’s retail plunge was significant, but not devastating. It was mostly caused by store doors being shut rather than a decline in consumers’ disposable income. Like everywhere, the 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.