Shops sold less, but earned more revenue because of higher prices

The retail sector sold less during the third quarter of this year, but still achieved a higher turnover. According to Statistics Netherlands (CBS), retail revenues rose on average by 4 percent on an annual basis. Sales volume, on the other hand, fell by 4 percent. A large majority of retail companies are counting on a further rise in sale prices in the near future.

The food sector saw a clear reduction in revenue, where turnover fell by about 8 percent with sales volume down by 3 percent. Specialty shops such as butchers and cheese shops had to deal with even lower sales volumes. However, such businesses managed to keep turnover at about even compared to a year earlier. The specialty shops are known to have gained in popularity since the coronavirus pandemic, especially when the hospitality industry had to keep their doors shut due to national restrictions.

Supermarkets are showing higher conversion rates, but the large grocers also had to contend with decreased volumes. The increase in turnover there was due to higher prices.

Both drugstores and clothing and footwear stores saw turnover and volumes increase. But the overall picture in the non-food sector was one of decreased sales volumes. Furniture stores, do-it-yourself stores and shops selling consumer electronics and appliances were among those with a lower turnover than a year earlier. Volumes also declined in these branches. In furniture stores, the volume fell by 17 percent.

Online retail sales rose 3 percent year-on-year, though there was a decline in the first half of the year. Just like the specialty stores, online stores clearly sold more during the coronavirus pandemic. The companies managed to maintain the higher sales volumes in the first half of 2021. This means that the comparison to the first half of this year is somewhat flawed.

According to Statistics Netherlands, 47 bankruptcies were declared in the retail sector in the third quarter of this year. That is more than double compared to a year earlier, when there were 19 bankruptcies. The number of bankruptcies is lower than during the same period before the coronavirus pandemic.

Retail companies accounted for approximately 10 percent of the total number of bankruptcies in the third quarter.