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Brunei
Wednesday, October 5, 2022
25.4 C
Brunei
Wednesday, October 5, 2022
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    Lack of domestic demand behind decrease in retail sales

    In the second quarter (Q2) 2022, the performance of the retail sales showed a year-on-year (y-o-y) decrease of 4.1 per cent with an estimated value decreased from BND488.2 million to BND468.3 million.

    In terms of volume, the retail sales also recorded a negative growth of 6.8 per cent y-o-y.

    The decline in retail sales was mainly caused by a drop in sales of textiles, wearing apparel and footwear by 12.6 per cent, followed by sales of electrical household appliances and lighting equipment in specialised stores 9.4 per cent; sales at petrol station 8.1 per cent; and sales in department store 6.8 per cent.

    It was due to the lack of domestic demand in line with the easing of cross-border travel restrictions and online learning and teaching continued and conducted until mid May 2022. The sales volume of these retail activities also registered a decrease.

    The food and beverages services had increased by 0.2 per cent compared to Q2 2021 with an estimated sales revenue increased from BND98.5 million to BND98.7 million.

    However, in terms of volume, food and beverages activity recorded a negative growth of 1.1 per cent y-o-y.

    The increase in sales revenue of food and beverages was mainly attributed by the increase in the sales revenue of other food service activities by 2.3 per cent and sales revenue of restaurants by 0.8 per cent.

    The increase was as a result of no dine-in capacity limitations starting early June 2022.

    Compared to the first quarter (Q1) 2022, the retail sales in Q2 2022 recorded an increase of 4.0 per cent mainly due to an increase in the sales of textiles, wearing apparel and footwear by 29.9 per cent; sales at petrol station 19.5 per cent; sales of furniture and household equipment 14.4 per cent; and sales in department store 7.2 per cent.

    The food and beverage services also recorded an increase of 5.8 per cent in Q2 2022 compared to Q1 2022 mainly due to the increase in sales revenue of catering service activities by 19.4 per cent; beverage serving activities 14.7 per cent; restaurants by 7.1 per cent; and fast-food outlets 4.1 per cent.

    Compared to Q1 2022, the increase in retail sales and food and beverage services’ activities was in line with the rise in domestic demand as most control measures were reduced, such as increasing the capacity for the entry of customers into business premises from 75 per cent to full capacity following the cessation of the COVID-19 Early Endemic Phase.

    Retail sales index (RSI) and food and beverages services index (F&BSI) are preliminary indicators of economic performance for both activities and provides an outlook for consumer spending trends in Brunei on a quarterly basis. Full reports of both activities are available from the Department of Economic Planning and Statistics’s website at https://deps.mofe.gov.bn.

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