Net sales

Uncertain environment affects retailer expectations: Svensk Handel

the confidence of swedish traders was undermined by the uncertain environment caused by rising prices and war in Ukraine, according to the latest data from Svensk Handel – a group that represents retail and wholesale trade in the country.

The March trade barometer showed lower expectations in all areas of trade compared to the previous month.

The Svensk Handel Future Indicator summarizes retailers’ beliefs about future sales, employment and profitability over the next three months, with a value of 100 indicating a neutral level.

The wholesale trade indicator fell by 6.4 points, to 92.1, impacted by the evolution of international trade flows.

Wholesale

The wholesale segment is also the part of the retail industry that sees a need to increase inventory in the near future, Svensk Handel noted.

Johan Davidson, chief economist at Svensk Handel, said: “The consequences of the war in Ukraine are adding new uncertainty to the wholesale sector.

“After more than a year of skyrocketing freight costs and delivery delays, as well as diesel and gasoline price increases, there are now new issues in the supply chain, hampering confidence in the future.”

Retail and e-commerce

The physical retail trade barometer fell 0.7 points to 95.1 points, which is below the neutral 100 level and indicates negative expectations for the future.

Davidson commented, “More people have found their way back to stores post-pandemic, which is reflected in the reasonably positive sales tone in the retail sector. However, new uncertainties, such as high inflation, are reducing expectations in the retail sector.

E-commerce emerged as the only segment that reported a marginal positive future indicator with a value of 100.2.

However, this is a sharp drop of three points from the previous month, when the figure stood at 103.2.

“Trust in e-commerce has declined since the lifting of pandemic restrictions and more and more people are shopping in physical stores. Now there is the added aspect of uncertain times, high inflation and households tightening their purse strings,” Davidson concluded.

© 2022 European supermarket magazine – your source for the latest retail news. Article by Dayeeta Das. Click on subscribe register for ESM: European Supermarket Magazine.