“Retail sales growth is expected to remain sluggish in the near term as COVID-19 spreads rapidly, discouraging outdoor shopping. Spiralling confirmed case numbers in the past few weeks have also dampened labour productivity and caused widespread disruptions in manufacturing supply chains,” according to a non-rating action commentary by Fitch Ratings.
Online retail sales will also be impacted as a result of logistics disruptions and shoppers refraining from online purchases to avoid delivery couriers or tainted packages. An increase in infections among express-delivery couriers has led to cancelled orders and backlogs at sorting centres and distribution outlets.
China’s total retail sales dropped -5.9 per cent year-on-year (YoY) in November 2022 (-0.5 per cent YoY in October 2022), with 11M22 total retail sales growth of -0.1 per cent YoY.
“The pace of retail sales recovery is expected to remain uncertain, subject to the extent of pandemic-related productivity disruptions and improvements in sentiment and employment,” added Fitch.
ALCHEMPro News Desk (NB)
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