Categories: Economy

Retail business grows, but ‘margin pressure is great’ Related Articles

In the last quarter of last year, the retail trade generated 7% more turnover than in the previous year. President Hans Biesheuvel of Ondernemend Nederland fears that he has earned less after all: “The pressure on margins is considerable in the retail sector.”

The increase in turnover can mainly be explained by the higher prices charged by many retailers. The sales volume actually decreased by three percent. This means that retail sales have declined for the third consecutive quarter.

Back to basics

Biesheuvel sees that prices for resellers have increased significantly over the past year. “The average rent has increased by 10-15% and wage costs and energy prices have also increased. In addition, many purchases have also become more expensive.’ According to the president of Ondernemend Nederland, the pressure on margins is therefore strong. “Many entrepreneurs find it difficult to pass these price increases on to the customer, so they feel it in their pockets,” says Biesheuvel.

Furthermore, life has returned to normal for many people, explains the president of Ondernemend Nederland. “We are back to pre-coronavirus levels. During the pandemic, people have sorted everything out in their homes, now they need money to pay their energy bills at home.’

In the last quarter of last year, the retail trade generated 7% more turnover than in the previous year. (AP) (ap)

Author: Myrtle Koopman
Source: BNR

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