On the back of rising demand for the upcoming Ghost Festival, the local retail sector is expected to see sales growth in July, at a time when many retailers have aggressively launched promotional campaigns, according to the Ministry of Economic Affairs (MOEA).
In addition, continued high temperatures have boosted demand for beverages in the local market, the MOEA said, and this trend is expected to give an additional boost to the local retail sector, as well as the food and beverage sector, in July.
The forecast was made by the ministry after it released data Friday showing that Taiwan’s retail sales for June stood at NT$335.8 billion (US$10.49 billion), up 0.2 percent from a month earlier and up 0.5 percent from a year earlier.
The statistics indicate that revenue in the local food and beverage sector hit NT$36.3 billion in June, up 1.9 percent from a year earlier but down 3.0 percent from a month earlier.
The Ghost Festival (中元節), the 15th day of the seventh month of the lunar calendar, will fall on Aug. 17 this year.
Local people usually buy foods and other necessities ahead of the festival in preparation for the folkloric rituals.
In addition, the Taipei Multi-Media Show, which was staged July 1 through July 4, was expected to boost sales of 3C products and eventually raise revenue of the local retail sector, the MOEA said.
The MOEA said that the hot weather is expected to prompt more and more consumers to buy beverages to keep themselves cool, while the current summer vacation is a peak season for local people to travel, which is expected to boost sales for the local restaurant businesses.
In June, sales posted by department stores, supermarkets, convenience stores and hypermarkets in the local retain sector gained 3.2 percent, 5.6 percent, 3.0 percent and 5.5 percent, respectively, from a year earlier, while sales of the auto/motorcycle business rose 3.5 percent from a year earlier, the MOEA data shows.
However, sales of the information and home appliance business in the local retail sector fell 5.6 percent year-on-year in June, the data indicated.
During the month, sales of the restaurant and beverage businesses in Taiwan rose 2.2 percent and 0.8 percent, respectively, from a year earlier, the MOEA said.
The MOEA said that sales posted by the local wholesale sector for June gained 3.6 percent from a year earlier to NT$805.8 billion.
In the first six months of this year, sales of the local retail and food/beverage sectors rose 2.0 percent and 2.6 percent, respectively, from a year earlier, while revenue posted by the wholesale sector fell 5.4 percent year-on-year, the MOEA said.