Page 32 - UKRRptAug20

4.4.3​ Retail sector dynamics
Ukraine retail sales advanced 3.0% y/y in real terms in 1H20​, slowing slightly from 3.1% y/y growth in 5M20, Ukraine’s State Statistics Service reported on July 21. In June, retail sales inched up 1.4% y/y (vs. a 3.1% y/y decline in May), and advanced 8.8% m/m in real terms.
Regionally, the highest retail growth in 1H20 occurred in the Kyiv (11.5% y/y), Zaporizhzhia (9.1% y/y) and Kirovohrad (8.7% y/y) regions. The major outsiders were Zakarpattia (-10.6% y/y), Chernivtsi (-9.8% y/y), Rivne and Lviv (-0.8% y/y) regions.
It was encouraging to see that retail recovered right after the restriction on retail trade was removed. This implies that the changes in the disposable income of Ukrainians as a result of the corona crisis were not significant enough to reduce their consumption behavior.
“Trade is recovering most rapidly,” reports ICU investment bank. ​Retail trade in May was down only 3.1% y/y. Wholesale trade in May was up 2.2% y/y, estimates ICU. Softening the impact of the coronavirus lockdon on trade were the growth of e-commerce and the fact that half of spending in Ukraine is on food. Supermarkets remained open during the three month lockdown.
32​ UKRAINE Country Report​ August 2020 ​ ​www.intellinews.com