2023-07-08 07:00:16
In front of a Leroy Merlin DIY store in Rezé (Loire-Atlantique), March 24, 2022. LOIC VENANCE / AFP
On the surface, retail activity, all sectors combined, held up well in the first half. On average, store turnover increased by 3% compared to the same period of 2022, according to figures published on Wednesday July 5 by the federation for the promotion of specialized trade Procos.
The stores have even realized “a good month of June, the third best month since the start of the year (+6.5%), even if the very end was complicated” with the riots that followed the death of Nahel M., killed on June 27 by a policeman during a roadside check, noted Emmanuel Le Roch, general delegate of this federation which includes 310 brands (60,000 stores). Adding the sales of brand websites to those of boutiques, specialized retail activity increased by 2.7% in value over the half-year.
But these results were inflated by rising prices. Sales volumes were down 0.5% over the half-year. Food expenditure, more expensive (inflation there reached 15.1% in June over one year), absorbing a larger share of the French budget, the latter are restricting themselves to other products.
End of year uncertain
In addition to clothing, whose activity continued to deteriorate over the months (− 2% in volume and − 0.7% in value in the first half), two categories are particularly in difficulty. The household equipment sector, which ranges from DIY to household appliances and decoration, saw its sales fall by 1.5% in volume. Those of cultural products, gifts and toys fell by 5% (and by 2.2% in value). “The high rate of equipment of the French during the Covid-19 in terms of household appliances and postponing purchases, which have high costs, such as renovating your kitchen”, explain the reluctance of households, according to Mr. Le Roch.
Read also: Article reserved for our subscribers Faced with inflation, the French are reducing their food purchases and betting more on digital
On the other hand, the beauty and health sector jumped (+ 3.5% in volume and + 11.5% in value), thanks to a return to normal post-Covid in the habits of French, and a sharp rise in prices, particularly for perfumes.
The end of the year remains uncertain. With a probable lull in inflation in the coming months, and “less stress on energy”Mr. Le Roch hopes that the food shopping of the French “will capture fewer shares of purchasing power. Otherwise, it will mean that there is a real change in purchasing behavior on consumer goods”.
1688802182
#Faced #inflation #French #restricting #nonfood #purchases
