Consumer Confidence Drops as Department Store Sales Plummet
The ongoing tariff war has contributed to an uncertain economic outlook, significantly dampening consumer spending. This trend poses a serious challenge for department and luxury goods retailers in Taiwan. Amid high base effects from last year, a surge in overseas travel, and the appreciation of the TWD, retail sales figures have significantly declined.
Recent statistics indicate that department store revenues fell by 1% in March year-on-year, with an even steeper decline of 3% noted in April. The automotive sector has also experienced a marked downturn, with sales dropping by 5.2% compared to the previous year.
Retailers remarked that while sales performance was acceptable during the Lunar New Year season, consumer confidence has waned due to global market volatility and uncertainty. Going forward, businesses must adopt innovative promotional strategies to increase consumer incentives for spending.
