Record retail sales in Denmark after post-lockdown 'ketchup effect'
The Local - [email protected]
Published: 25 Jun, 2020 CET.
Updated: Thu 25 Jun 2020 10:59 CET
Sales of shoes and clothes Denmark leapt by close to 100 percent in May in what the Danish Chamber of Commerce is describing as a post-coronavirus "ketchup effect".
According to Statistics Denmark, retail sales overall rose 9.4 percent in the month after shopping malls were reopened, hitting a new record after the largest month-on-month increase since it first started reporting retail statistics at the start of the year 2000.
"This is of course positive and clearly shows that the Danes have had the courage to increase consumption as the reopening takes place," said Tore Stramer, chief economist at the chamber, in a press statement.
"However, it must be borne in mind that there has been a saving in consumption that has been let loose in May. So we are also seeing a ketchup effect in consumption."
READ ALSO:
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Shopping malls reopen in Denmark under new rules
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Danish retailers warn of 'tsunami of lay-offs' if malls stay closed
Denmark's government shut down all shopping malls in the country in mid-March, with most high street shops also closing their doors until the restrictions were relaxed on May 11.
The surge in sales will make up for some of the financial hit taken by Danish retailers during the lockdown, indicating that profits for the year might be less affected than feared.
But Stramer warned that higher unemployment and a fall in Danish exports would continue to drag on Denmark's economy over the rest of the year, meaning May's bumper sales were unlikely to continue.
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According to Statistics Denmark, retail sales overall rose 9.4 percent in the month after shopping malls were reopened, hitting a new record after the largest month-on-month increase since it first started reporting retail statistics at the start of the year 2000.
"This is of course positive and clearly shows that the Danes have had the courage to increase consumption as the reopening takes place," said Tore Stramer, chief economist at the chamber, in a press statement.
"However, it must be borne in mind that there has been a saving in consumption that has been let loose in May. So we are also seeing a ketchup effect in consumption."
READ ALSO:
- Shopping malls reopen in Denmark under new rules
- Danish retailers warn of 'tsunami of lay-offs' if malls stay closed
Denmark's government shut down all shopping malls in the country in mid-March, with most high street shops also closing their doors until the restrictions were relaxed on May 11.
The surge in sales will make up for some of the financial hit taken by Danish retailers during the lockdown, indicating that profits for the year might be less affected than feared.
But Stramer warned that higher unemployment and a fall in Danish exports would continue to drag on Denmark's economy over the rest of the year, meaning May's bumper sales were unlikely to continue.
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