Ukraine retail trade slowed to 3.5% growth in January
Ukrainian retail sales increased 3.5% yoy in January slowing from 13.4% yoy surge in December, Ukraine’s State Statistics Service reported on Feb. 22. Month-to-month, the retail declined 27.9% in real terms.
Regionally, the highest retail growth in January occurred in the Kyiv (13.9% yoy), Chernihiv (10.7% yoy) and Zaporizhia (6.9% yoy) regions. The largest declines were observed in the Lviv (-3.1% yoy), Cherkasy (-2.9% yoy) and Kharkiv (-2.2% yoy) regions.
Evgeniya Akhtyrko: Apparently, the nationwide quarantine restrictions on Jan. 8-24, which included the ban to sell non-food goods, hurt the retail sector greatly. The online sales of some non-food sellers boomed during this period, but it was not enough to compensate the drop in offline sales.
We expect retail sales to pick up a lot in February, as consumers will try to compensate January’s underconsumption. The consumer demand is to stay strong in 2021, with retail sales growing 10% yoy (vs. 8.4% yoy growth in 2020), we predict.