“However, retail sales were still above pre-pandemic values,” it said when the study was presented to the media in Zurich on Wednesday. In particular, segments that would have benefited from the pandemic conditions would have lost revenue growth without these special effects. First of all, this encompassed the food and household goods area (called “food/near food” in industry jargon).
During the pandemic, food sales had soared as people cooked their own meals while restaurants were closed during quarantines. With the end of corona restrictions, people are increasingly going out to eat again.
CS economists wrote that the non-food segment did relatively well last year, especially supported by suppressed consumption in the entertainment sector. Although shopping tourism has revived, it has not skyrocketed. “This is surprising as the Swiss franc has appreciated significantly against the euro last year, thereby strengthening the purchasing power of Swiss people abroad.”
This revaluation effect has been weakened by high inflation abroad. CS experts noted that this moderate development shows that tourists who shop are price sensitive, as shopping abroad has lost its popularity due to higher prices.
Other reasons may be that, on the one hand, it is more expensive to get there due to increased fuel costs. On the other hand, consumer behavior has shifted somewhat in favor of online ordering and express delivery services during the pandemic.
However, online commerce also failed to reach the high growth rates of the previous two years, CS wrote: “However, sales remained high.”
Despite more gloomy prospects for the Swiss economy, experts expect growth in the Swiss retail sector in the new year. The supports are the continued stable situation in the labor market, a slight increase in real wages and immigration.
Nominal sales in the food/near food area are likely to increase by around 2.1 percent, mainly due to inflation, which CS expects to be +1.6 percent. Credit Suisse economists expect sales to grow by about 0.8 percent in all non-food segments.
(SDA)