Euler Hermes: what is happening in Hungarian retail?

By: Trademagazin editor Date: 2021. 03. 10. 11:55

While total retail sales declined 0.2 percent in 2020, food trade, which accounts for half of total sales, grew 3 percent year-over-year despite the pandemic. Significant lifestyle changes have also shaped the sector: the share of online sales has increased significantly – although it is still far below the European average -, the demand for healthy foods has increased, while sales of premium foods have fallen and some products have risen sharply.

The non-food category has been hit hard by the changes and constraints associated with the pandemic and global supply chains are being reshaped, giving this part of the sector a very different picture: last year’s 0.4 percent decline compared to 2019 growth of 2019 is a significant turnaround. The largest declines were in clothing, hospitality and fuel trade. As a result, the risk ratings of many retail store chains have deteriorated in Euler Hermes’ rating system, and several retail chains in Hungary will be closed down.