Taiwan domestic supermarket sales up almost 10 percent in March
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Sales posted by supermarkets in Taiwan rose almost 10 percent year-on-year in March, outperforming the retail sector as a whole, because of the expansion of their retail networks, according to the Ministry of Economic Affairs (MOEA).
Efforts to promote fresh food in their stores also boosted supermarket sales compared with the same month a year earlier, the MOEA said.
In a monthly report on the sales of the wholesale, retail and dining sectors in Taiwan, the MOEA said supermarkets saw sales of NT$14.8 billion (US$458 million) in March, up 9.2 percent from a year earlier, while the overall retail sector’s revenue rose only 1.1 percent year-on-year to NT$319.6 billion .
The MOEA said that with PXMart, one of Taiwan’s leading supermarket chains, planning to add stores this year and next year, the supermarket segment could continue to see sales grow in the near future.
PXMart has announced it will expand its network to 900 outlets in 2016 and 1,000 in 2017 from 794 at the end of 2015.
Also in the retail sector, sales posted by department stores rose 3.6 percent in March from a year earlier to NT$21.9 billion as they introduced new products to consumers and added stores, the report said.
“PXMart has announced it will expand its network to 900 outlets in 2016 and 1,000 in 2017 from 794 at the end of 2015.”
Sales at hypermarts and convenience stores rose 4.4 percent and 1.4 percent in March from a year ago, respectively, to NT$13.8 billion and NT$24.5 billion, according to the report.
The domestic retail sector also benefited from a 10.7 percent rise in online retail sales in March from a year earlier to NT$19.7 billion and aggressive promotional campaigns in the automotive industry that pushed the sector’s sales 5.3 percent higher to NT$52.8 billion.
As for the wholesale sector, the MOEA said, revenue fell 5.3 percent from a year earlier to NT$785.7 billion during the month as notebook computer and LCD TV buyers from Japan continued to cut back their orders.
Falling prices for flat panels and dynamic random access memory chips also affected wholesale sales in the month, the ministry said.
Wholesale trade in beauty and health products bucked the downturn, however, posting a 4.7 percent year-on-year increase in revenue to NT$36.4 billion due to a flu outbreak and promotional activities ahead of Mother’s Day, the MOEA said.
Meanwhile, revenue posted by the dining sector fell 1.8 percent in March from a year earlier to NT$33.6 billion, ending a 13-month streak of year-on-year gains. The MOEA said the decline was due to the high number of rainy days during the month, which kept families indoors.
Within the dining category, restaurants saw their sales fall 1.7 percent in March from a year earlier to NT$28.5 billion, and beverage vendors saw revenues dip 3.6 percent year-on-year to NT$3.7 billion, the MOEA said.
Questions & Answers
Q.What factors contributed to the significant increase in supermarket sales compared to the overall retail sector in March?
What factors contributed to the significant increase in supermarket sales compared to the overall retail sector in March?
Supermarkets expanded their retail networks and made efforts to promote fresh food in their stores. These strategies helped them to outperform the overall retail sector's growth in March.
Q.Which retail categories saw positive sales growth in March, besides supermarkets?
Which retail categories saw positive sales growth in March, besides supermarkets?
Department stores, hypermarts, convenience stores, and online retail all posted sales increases in March. The automotive industry also saw sales rise due to aggressive promotional campaigns.
Q.What reasons were given for the decline in the wholesale sector's revenue during March?
What reasons were given for the decline in the wholesale sector's revenue during March?
The wholesale sector's revenue fell because notebook computer and LCD TV buyers from Japan cut back orders. Falling prices for flat panels and dynamic random access memory chips also affected sales.
Q.Why did the dining sector experience a decline in revenue in March, ending its streak of gains?
Why did the dining sector experience a decline in revenue in March, ending its streak of gains?
The MOEA attributed the dining sector's revenue decline to the high number of rainy days during March. This weather kept families indoors, impacting restaurant and beverage vendor sales.
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