Page 55 - RusRPTAug21

4.5.3 Retail sector dynamics
The growth in retail sales slowed to 10.9% y/y in June after rising 27% y/y in May and 35% y/y in April. However, turnover growth exhibited its first contraction on a SA m/m basis since November 2020, down 0.1% SA m/m due to the lower consumption of non-food products (-1.2% SA m/m) despite the pickup in food consumption (+1.1% SA m/m). Services consumption also turned negative on an SA m/m basis for the second consecutive month (-0.5% SA m/m in June vs. -0.2% SA m/m in May) because of COVID-19 and related restrictions. Car sales contracted 3% SA m/m for the first time since January.
The volume of retail sales in Russia in May 2021 jumped by 27% year on year, according to the latest data from RosStat statistics agency. The growth was due to the low base of the lockdown period of April-May 2020, but still exceeded the consensus expectations of 24.6%.
As covered by bne IntelliNews, Russia's economy contracted less than feared in 2020 and now it is bouncing back from the coronacrisis faster than analysts were expecting. However, the recovery risks being sabotaged by the rising third wave of coronavirus (COVID-19).
"May was the second month after April when the base factor was especially supportive for high growth rates in retail trade and the service industry," BCS Global Markets commented on June 29.
55 RUSSIA Country Report August 2021 www.intellinews.com