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Slovak E-shops Struggle Amidst Falling Sales and Consumer Savings
🇸🇰 Slovakia /Economy & Trade

Slovak E-shops Struggle Amidst Falling Sales and Consumer Savings

From SME · (2d ago) Slovak Critical tone

Translated from Slovak, summarized and contextualized by DistantNews.

TLDR

  • Slovak online stores are experiencing a significant decline in sales, with some reporting drops of up to 42% year-on-year.
  • Consumers are increasingly prioritizing discounts over quality due to economic consolidation and rising prices.
  • Retail sales in Slovakia have fallen for four consecutive months, with e-commerce seeing a 10% year-on-year decrease in February.

The economic climate in Slovakia is forcing consumers to tighten their belts, and the impact is being acutely felt by online retailers. Businesses like Nikola Hrebiková's Mambolino, which sells children's clothing and footwear, have seen sales plummet by as much as 42% in the first quarter of the year compared to last year. This sharp decline is not an isolated incident; it reflects a broader trend of cautious spending across the nation.

I have the feeling that people have started to save.

— Nikola HrebikováDescribing the current consumer behavior in Slovakia.

Hrebiková observes that customers are now primarily driven by discounts, a shift from previous considerations of quality. "I have the feeling that people have started to save," she stated, acknowledging the understandable impact of economic consolidation on household budgets. While this focus on sales is logical for consumers, it presents a significant challenge for online sellers who are finding it harder to maintain profitability.

And I don't blame them, because consolidation has an impact on everyone.

— Nikola HrebikováExplaining the reasons behind the increased saving behavior.

The broader retail sector in Slovakia is also struggling, with overall retail sales dropping for the fourth month in a row. In February, these sales decreased by 2.5% compared to the previous year, according to the Statistical Office. The e-commerce sector has been particularly hard-hit, experiencing a 10% year-on-year decline in February alone. This downturn is attributed to a combination of factors, including increased competition from Chinese sellers and the strategies of larger market players, forcing smaller businesses to reconsider their operations, with some even contemplating closure.

I perceive that people are more willing to buy products if they see a discount on them.

— Nikola HrebikováHighlighting the shift in consumer priorities towards discounts.
DistantNews Editorial

Originally published by SME in Slovak. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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