Retail sales fall during November in Italy despite further discounting
Staff Writer |
Following two months of growth, monthly retail sales in Italy were slightly lower during November.
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This proved to be a considerable disappointment for retailers, with sales missing expectations to a noticeable degree.
Still, forecasts for December were positive and with solid growth in purchasing activity recorded, retailers built up for the crucial Christmas shopping period by accumulating stocks to the greatest degree in the survey history.
November’s IHS Markit Italy Retail PMI – which measures changes in like-for-like sales on a monthon-month basis – recorded a level of 49.2, down from October’s 50.3.
Latest data marked the first time in three months that sales have fallen.
Compared to a year ago, like-for-like sales were also down, with the degree of contraction the sharpest seen since July.
There were reports from panellists that footfall was lower and that market conditions were a little unstable.
Sales failed to rise despite retailer promotions and discounts being offered.
This had a knock-on effect for margins, which were again lowered noticeably during the latest survey period.
Price reductions reflected efforts to improve sales and as part of retailer strategies to deal with ongoing strong competition.
When compared to previously set plans, retailers recorded a noticeable sales miss in November.
IHS Markit Italy Retail PMI Outside of competitive pressures and a challenging demand environment, there were reports that unusual weather for the time of the year meant that sales levels disappointed.
Weaker-than-anticipated sales subsequently left retailers with some unsold stock during the latest survey period.
With the purchasing of goods for resale increasing at a solid rate in November (largely in line with previous plans), panellists recorded the strongest increase in stocks in nearly 14 years of data collection.
Higher purchasing activity also reflected positive projections for the crucial Christmas shopping period.
Retailers signalled a high degree of confidence that sales will exceed previously set plans, with optimism the highest since the end of 2006.
Promotional activities are widely forecast to help drive growth. ■