Swiss retail trade with subdued outlook according to UBS
Published: Tuesday, Sep 10th 2024, 11:00
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According to the major bank UBS, the Swiss retail sector has suffered from subdued consumer sentiment so far this year. And the outlook for the coming months is also rather subdued.
After stagnating in the first quarter, nominal sales declined in the second quarter, according to a UBS study published on Tuesday. Cumulatively, nominal retail sales have been in the red so far.
Bad weather
The situation is particularly difficult in the non-food sector. The rather poor weather has put a damper on sales for many retailers, for example in the garden and leisure sectors.
According to UBS, the outlook for retailers in the coming months is also rather gloomy. The above-average increase in health insurance premiums in particular is weighing on disposable household income and contributing to poor consumer sentiment.
On the other hand, inflation has fallen. Inflation in the food sector was less than 1 percent compared to the previous year. In the non-food sector, prices even fell compared to the previous year.
"In many retail segments, however, prices are still well above 2019 levels," the report continues. The experts cite furniture as an example. While nominal wages increased by around 3.3% on average between 2019 and 2023, furniture prices rose by more than 10% in the same period.
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