The Swedish retail trade increased in both turnover and volume in January. Especially durables where sports and leisure peaked with cold temperatures.
The retail trade sales volume increased by 4.0 percent in January compared with the same month last year in working day adjusted terms. Retail sales for consumables increased by 1.9 percent while retail sales for durables increased by 5.6 percent.
The turnover for retail trade measured in current prices increased by 3.0 percent from January 2015 to January 2016. Retail trade for consumables showed an increase of 2.6 percent, while durables increased by 3.4 percent.
In constant prices, seasonally and working day adjusted, retail trade sales increased by 0.7 percent between December 2015 and January 2016. During the last three-month period (November through January), sales increased by 1.1 percent compared with the previous three-month period (August through October). .
This year’s retail sales in January got a boost from snow and cold weather which made their season premiere in the whole country in January and spurred sales. Sports and leisure goods thereby became the winner of the month with an increase in sales by 15.0 percent.
HUI Research comments that also the home hardware category continues to show strong growth and stopped at a 6.9 percent growth rate. The industry is disadvantaged by lowered tax reductions for renovations and extensions of private property introduced at the beginning of the year, but the positive development continued.
”Households’ ability to consume remains favourable. The low interest rate, low inflation and a stable labour market will continue to make the retail sector a source of growth for the Swedish economy. The retail sector has grown every year since 1997 and the forecast is continued strong growth for the full year 2016, but less than 2015 due to higher taxes and more stringent amortisation requirements.” comments HUI and predicts that the total retail industry will have a sales growth of 4.0 percent for the full year.