Retail Sales Sink Amid Fifth Covid Wave

New government figures released on Thursday showed that the value of total retail sales in February snapped 12 months of growth to plunge 14.6 percent year-on-year, as the fifth wave of coronavirus infections hammered the sector.

The slide in sales followed a four percent year-on-year increase recorded in January.

Taking the first two months into account to remove the Lunar New Year effect, the value of sales fell 4.9 percent compared to the same period last year.

While most segments recorded a drop during the two-month period, supermarket sales rose 8.2 percent during the period, while medicines and cosmetics soared five percent.

“The rapid worsening of local epidemic situation and further tightening of anti-epidemic measures in response led to a drastic fall in people flow and weaker consumption sentiment,” a government spokesman said.

The government noted that while the consumption vouchers to be delivered next month will likely provide some support, things will remain tough for the retail sector.

“While the local epidemic has shown signs of easing of late, the retail sector will continue to face notable pressure in the near term.”