Retail chains’ food sales down sharply

By ADRIAN FILUT
August 23, 2011 06:15

GDP growth figures for the second quarter indicate that the economy is slowing down and that private consumption is falling.

1 minute read.



Pasta

pasta 311. (photo credit: Courtesy)

The social protest and economic slowdown are affecting retailers. Food sales by supermarket chains fell a seasonally adjusted 7 percent in July 2011, compared with June, the Central Bureau of Statistics reported Monday. The Sales Value of Chain Stores Goods Index fell 2% in July from June, it said.

Trend figures show a much more optimistic picture, but they are not as good in times of a turnaround because they are based on the much better results from preceding months, so it is better to look at the seasonally adjusted figures.

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The figures are in line with with the Consumer Price Index (CPI) figures for July, which the statistics bureau published last week and which fell 0.3%, in contrast to analysts’ forecasts of a rise of 0.3%.

The CPI showed a 2% drop in prices for dairy products in July; a 1.3% drop in prices for meat, poultry and fish; and a 1.6% drop in prices for fresh produce. These drops greatly contributed to the 0.6% drop in the food item of the CPI. The CPI’s furniture and household products item fell 0.2%.

The July figures may reflect the “cottage-cheese effect,” which began when Globes published a report on price hikes of the Israeli staple, leading to a consumer boycott. GDP growth figures for the second quarter indicate that the economy is slowing down and that private consumption is falling.


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