In recent months, total retail sales of goods and service revenue have increased but the increase is still not high. Stimulating the consumer market at the end of the year is an important solution.
The retail industry flourished
Since the beginning of the third quarter, by implementing consumer stimulus programs, purchasing power in districts, towns and cities in the province has increased. From September 2023 until now, there has been growth compared to previous months and compared to the same period in 2022. The province's total retail sales and service revenue in October 2023 reached VND25,680 billion. Accumulated 10 months reached VND251,254 billion, up 13.1% year-on-year.
According to the assessment of the provincial authorities, the growth in retail revenue and goods services is partly because businesses simultaneously implementing promotions and discounts, contributing to increasing total demand and stimulating purchasing power. In general, promotional programs have attracted the attention and participation of businesses from manufacturing, retail, services to tourism, restaurants, hotels etc. in the province, thereby improving good consumption.
Supermarkets in the province expect the overall purchasing power of the market to improve by the end of the year
Reality also shows that in 2023, many businesses have carried out promotions lasting many months. For instance, retailer Saigon Co.op has launched a continuous discount roadmap on big holidays with many incentives to attract customers. This supermarket has offered discounts on household appliances, electrical appliances, fashion and apparel etc. with discounts ranging from 30 - 59%. In addition, the commodity market has also become more vibrant as the demand for garments and household equipment increases during the changing seasons, starting with the new school year. The simultaneous, strong and consecutive price reductions of retailers have boosted overall purchasing power in the market.
Create momentum for the market
According to assessments of supermarkets, in recent times, the retail sales of goods in the country in general and Binh Duong in particular have increased but at a rather slow pace. According to Nguyen Thi Hong Khanh, Director of Co.opmart Cho Dinh supermarket, the increase has not yet reached compared to the previous period, showing that growth is not as effective as expected. "Currently, the sales growth of modern retail businesses has stagnated. If we subtract the price slippage, the distributed output is equal to or lower than the same period," Khanh said.
Also according to Khanh, consumers are shopping more economically and consumption trends are changing. After global difficulties, the commodity structure changed to focus more on essential, low-value goods. Along with that, under the impact of the wave of labor cuts and salary cuts that many businesses have implemented since the beginning of the year, people's income has decreased, leading to more cautious spending. Therefore, the profits of the retail industry have been under heavy pressure from weak demand...
According to Khanh, from the beginning of the year, many consumer stimulus policies have been introduced by the Government such as reducing VAT by 2%, reducing interest rates... which have partly supported businesses. Besides, retail businesses still have to make efforts to mobilize themselves to adapt to the market. Specifically, businesses self-identify that the market and structure of product sources are consistent with consumers' frugal spending trends for development.
The approaching year-end shopping season will stimulate more vibrant shopping demand, helping the retail industry improve its business situation and regain growth momentum. Therefore, retail businesses believe that it is necessary to continue to synchronously implement groups of solutions to stimulate domestic consumption, contributing to promoting domestic production. In particular, it is necessary to strengthen control over price listing to prevent false scarcity or local price increases in some items from occurring. Along with that, it is necessary to focus on resolving remaining difficulties in production and business such as accelerating tax refunds, reducing value added tax to remove difficulties for businesses.
On the other hand, Nguyen Ky Hiep, Manager of MM MeGa Maket Binh Duong supermarket, said that businesses need to focus on and improve the quality of goods, strictly implement measures on food safety quarantine and regulations. Packaging methods for food, agricultural and aquatic products according to market regulations. From there, improving the competitiveness of products, not only maintaining domestic market share but also expanding export markets. On the other hand, increasing activities to support businesses in promoting products, strictly controlling quality and food safety standards, traceability... These policies need to be applied sooner and more continuously and long-term to support businesses, contributing to increasing economic demand, thereby directly affecting the expected sales of retail businesses in the coming time.
Reported by Thanh Hong - Translated by Ngoc Huynh
