Jakarta, CNBC Indonesia – Indonesia’s retail sales are still sluggish, no wonder layoffs in this sector continue to occur. Not long ago, Sogo to Seibu outlets under MAP were hit by news of mass layoffs.
Bank Indonesia (BI) reported that retail sales as reflected by the Real Sales Index (IPR) grew negatively, aka contracted by 8.7% in September 2020 compared to the same period the previous year (year-on-year/ YoY). Improved compared to August 2020 which was -9.2% YoY although still negative.
Retail sales have recorded negative growth for 10 consecutive months, since December 2019. During those 10 months, the average retail sales growth was -9.08% per month.
During the third quarter of 2020, retail sales grew -10.1% YoY. Improved compared to the previous quarter which was -18.2%, but again still minus.
The bad news doesn’t stop there. BI estimates that retail sales in October 2020 will still grow negatively, even worse than the previous month, namely -10% YoY. “A number of commodities such as the food, beverage and tobacco group as well as cultural and recreational goods are estimated to experience a decline in sales,” said a written statement from BI.
In the next three months (December 2020), the business world estimates that retail sales will increase as described by the Sales Expectation Index (IEP) of 157.2. However, sales in the next six months (March 2021) are expected to fall by an IEP of 159.4.
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