Retail growth eases to 1.6% in January

Romania's retail sales volume index increased by 1.6% in January compared to the same month of 2020. It was the weakest performance since last May when the retail sales plunged by 5.5% year-on-year amid lockdown.

Food sales remained strong during the crisis - except for April, as a correction after the excessive purchases in March - while the non-food sales shifted online once physical stores were closed and thrived during the past year: they increased by 10% in the second half of 2020, compared to the same period of 2019. For the same period, the food sales advanced by 2.7% year-on-year.

The movement restrictions hurt deep the sales of fuels, though: they contracted by 5.7% year-on-year in the second half of 2020. In January this year, non-food sales increased by only 1.5% yoy.

The figure might be explained by the concerns generated among households by tighter budget spending this year.

The Government froze the wages in the public sector, and the wage hikes in the private sector remain uncertain as financial managers are strictly monitoring the costs.

Food sales advanced by 1.6% yoy in January, reflecting the households' robust current financial situation. Fuel sales remained in the negative area, with a 6% yoy contraction.

Neither domestic tourism nor daily commute returned to normal, which will remain visible in the fuel sales for the first part of the year.

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