Analysts: Retail Revenues to Shrink for Second Year Running

Bratislava, 8 April (TASR) - Fiscal consolidation is significantly eroding the consumer sentiment of Slovak households, causing a decline in retail revenues, which are expected to drop for the second consecutive year in 2026, according to UniCredit Bank analyst Lubomir Korsnak's commentary on February retail revenues published by the Statistics Office on Wednesday. Slovenska sporitelna analyst Marian Kocis said that the appetite for shopping in the coming months will be partly influenced by increased geopolitical uncertainty and potentially higher inflation due to the war in the Middle East. "So far, the macroeconomic framework for 2026 suggests volatile results and stagnating consumption rather than a return to sustainable growth," he stressed. "Therefore, we expect retail revenues to remain under pressure in 2026 and be more likely to stagnate in real terms. Households will continue to navigate an environment in which the implemented consolidation measures have caused disposable incomes to drop and price sensitivity to rise," he said, adding that in practice, consumers will continue to focus on special offers, discounts and private labels, which will put pressure on profit margins. The Statistics Office reported on Wednesday that retail revenues in Slovakia fell by 2.5 percent year-on-year in February, marking the fourth consecutive month of annual drops, although the pace of decline was slower than in the previous three months. After seasonal adjustments, retail sales grew by 0.1 percent in monthly terms. jrg/df