French retail sales rise for third consecutive month
Staff Writer |
French retailers signalled a third consecutive monthly rise in retail sales during February.
Article continues below
However, sales were down on an annual basis.
Previously-set targets were missed again, but retailers expect retail sales to exceed targets in March.
Gross margins fell to a greater extent, despite a slower rise in retailers’ purchasing costs.
The value of goods ordered for resale rose further, and contributed to another rise in stock levels.
Meanwhile, retail sector employment continued to rise.
The seasonally adjusted headline Retail PMI posted 51.7 in February, down from 53.1 in January, signalling a slightly weaker rise in like-forlike sales.
Anecdotal evidence suggested a greater number of promotional offers contributed to the expansion.
However, sales were down on an annual basis in February, following an increase in January.
That said, the rate of decline was only moderate and softer than the long-run series average.
Actual sales continued to fall short of retailers’ previously-set plans during February.
Moreover, the extent of the latest shortfall was the sharpest in four months.
Retailers’ expectations turned optimistic during February.
Furthermore, the degree of positive sentiment was the most marked in three months.
Factors expected by survey respondents to boost sales over the coming months include a positive economic environment, commercial campaigns, favourable weather conditions and potential tax cuts.
Those factors reported by panel members as likely to depress sales over the next three months include political uncertainty, poor weather conditions, a fall in client purchasing power, potential tax increases and higher competitive pressures.
Gross margins decreased for the second time in as many months during February.
The rate of contraction quickened from January and was solid overall.
A number of respondents linked the decrease to a combination of greater competitive pressures and more promotional offers.
French retailers reported another rise in average purchase costs during February, thereby extending the latest sequence of inflation to 29 months.
In line with a positive sales trend, firms raised their purchasing activity during February.
That said, the rate of expansion eased from the previous survey period and was only slight overall. ■