Retail sales to fall in 2007 as households live off savings
Retail sales will fall this year as households increasingly live off their savings, market research firm GfK Hungária said on Tuesday.
The 5% increase in the middle VAT rate will result in a drop in consumption, GfK's report said. The increase will have an especially significant influence on pensioners and employees who live off their monthly wages. The latter group will also be affected by an increase in employee contributions, but these effects will only be felt next year, GfK said.
Retail consumption is expected to rise by only 2% in 2006, GfK said. But hypermarkets will continue to strengthen their positions over the next few years, said the researchers. Hypermarkets currently account for around a quarter of daily staple purchases and this will rise to 28% by 2010, the report forecast.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.