Are Empty Shelves Not Far Away?

The retail turnover started having problems.

Following the results of work in the second quarter of 2020, the retail business of Belarus noted a number of serious problems. At the same time, the forecast for the future is also not optimistic, writes "Ezhednevnik".

According to the results of a survey conducted by the Economic Research Institute of the Ministry of Economic, heads of retail trade organizations noted in the 2nd quarter of 2020 a decrease in retail turnover, sales in volume terms, and return on sales and investments. The deterioration of the situation was also noted with the availability of resources and orders for the supply of goods, which led to a decrease in warehouse stocks and a decrease in the number of employees in the industry. Many other factors restraining the business activity of the retail sector also showed negative trends.

Thus, the index of entrepreneurial confidence, which was already in negative values, for the 2nd quarter of 2020 fell to a record value for the entire period of observations - from minus 2 to minus 9. As noted in the study, the decline in the index is due to the deterioration of assessments of the economic situation organizations and reflects the complexities of the industry caused by the coronavirus pandemic.

The level of profitability of trade organizations in the 2nd quarter of 2020 continued to decline, but this was indicated by 70% of respondents, while only 13% indicated an increase.

Among the factors hindering the development of trade organizations, the low effective demand, which was indicated by 68% of the respondents, was especially aggravated, although high competition still occupies a leading position - it was indicated by 78% of the respondents. Another negative factor that has grown is the lack of its own working capital (48%). At the same time, 47% of respondents named an unfavorable epidemiological situation among the deterrent negative factors.

When making forecasts for the third quarter of 2020, most of the interviewed heads of trade organizations indicated a slight increase in retail turnover and sales in physical terms, but at the same time noted a decrease in the provision of their own resources, a decrease in profitability and the number of employees.