Four international retail chains leave Hungary due to COVID-19
The coronavirus epidemic situation that erupted more than a year ago has completely upset our lives. This is most evident in the analysis of our shopping habits. Revenues in some areas have not fallen. There was a sector where there was growth, while the pandemic excessively wore out the fashion sector. As a result, four retail chains were closed down in Hungary.
Retail sales fell 0.2 per cent last year. In contrast, the food trade grew by 3 per cent. The impact of the epidemic also shows itself in altering shopping habits. The share of online sales has increased significantly, but it is still below the European average. As expected, the demand for premium foods decreased, partly due to price increases, writes 24.hu.
Interestingly, there has been an increase in demand for healthy food.
Another winner of the epidemic are electronics and IT. Traders closed a record year in this sector. Besides, the demand for DIY goods, home furnishing products, and fitness products also increased during last year’s pandemic period. On the other side of the scale are products like fuel, clothing and footwear stores. These sectors experienced a severe downturn in 2020.
The fashion sector is the third most affected sector after tourism and hospitality due to the coronavirus epidemic.
Accordingly, four store chains will definitely close in Hungary. These are Vagabond, Promod, Camaieu and Cosmos City, according to Euler Hermes.
An interesting question is what to expect in the future. Of course, it also depends a lot on how long the restrictions last. According to Tünde Bujdosó, director of Risk Management at Euler Hermes, retail savings increased during 2020. As a result, with the completion of the closures, retail sales may increase this year.
The epidemic will also have long-term effects. For example, local consumption patterns have changed, leading to a decline in larger retail chains. At the same time, local producers can expect an increase in their incomes. Stores and entrepreneurs need to be able to switch to online sales. In this case, the impact of the restrictions is not as drastic in terms of revenue either. In a bad situation are those who have not been able to respond and adapt appropriately to changed circumstances.
- Foreign retail chains to vanish from the Hungarian food industry?
- Pandemic slows Hungary retail sales growth to 4.4 pc in March
Source: 24.hu