Retail: CS expects slight recovery
The Swiss retail sector will recover slightly in 2016 following the difficult previous year, Credit Suisse researchers forecast in their Retail Outlook for 2016. However, the expansion of retail space will continue to level off this year.
In 2015, the non-food segment in particular suffered from declining sales, while the declines in the food and near-food segments were less pronounced. According to a survey by Fuhrer & Hotz, only one third of the retailers and manufacturers surveyed achieved their sales targets. One in five companies fell significantly short of its sales target in 2015. The main reasons for this were shopping tourism and the continued growth of online retailing.
Credit Suisse expects a slight easing in the retail sector in 2016. Of the retailers and manufacturers surveyed by Fuhrer & Hotz, 53 percent are budgeting for higher sales in 2016 than in the previous year. Companies in the food segment are slightly more optimistic than those in the near- and non-food segment.
While the majority of food retailers intend to expand their sales areas in 2016, near- and non-food retailers are mainly planning to maintain or reduce them. The expansion of selling space is likely to level off further in 2016. (ah)
