Retail

Seasonal fluctuations in the retail industry

Retail industry covers a wide range of companies, which have in common that they all supply directly to consumers. The retail industry thus includes both supermarkets and department stores and a wide variety of specialty shops. The industry has experienced ups and downs, but before the crisis began in 2008/2009, the industry went through a rapid growth both in Denmark¹ and in the EU2.²

The fact that the retail industry consists of stores that sells directly to consumers, result in a very cyclical market which follow an annual pattern.³ The industry's turnover increase dramatically late in the year, after which it decreases more or less intensively in the beginning of a new year. This cycle can largely be explained by the Christmas trading impact on turnover.

As such, the retail industry is to some extent dependent on the Christmas trade. In addition, there is usually also a turnover slump in late summer periods, probably due to customer reticence after the end of the holiday period.

Decline in employment after the crisis
The retail industry in Denmark employed in mid-2009 approximately 125,000 full-time employees and the number peaked in early 2008 by some 132,000 employees.⁴ As the turnover cycle in the industry is fairly stable, so is the distribution between sub-sectors in the period 2001 to 2008.

The largest actors in the retail industry are the supermarkets and department stores, with trade in textiles, household goods and trade in clothing and footwear follow suit.⁵ Further, the industry comprise of specialty shops within foods, trading in consumer electronics, cultural and leisure products, Internet commerce, mail order etc.

¹ Statistikbanken, DEMO3
² Eurostat, tin0008
³ Statistikbanken, DETA11, 2005 = 100
⁴ Statistikbanken, BESK12
⁵ Statistikbanken, RAS09

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