Taiwan’s retail sales growth showed mixed results in May, reaching NT$394.9 billion (US$12.2 billion). However, this figure marked a 1.6% decline compared to last year. This drop represents the second consecutive month of falling retail sales growth, signaling some challenges for the domestic market. The Ministry of Economic Affairs attributed the decline mainly to the effects of U.S. tariff policies. These tariffs impacted exchange rates and the stock market, reducing consumer confidence. Additionally, more Taiwanese people traveling abroad led to less spending within the country.
Despite the recent slowdown, retail sales growth for January through May remained strong. The total sales hit a record NT$1.97 trillion, showing a slight 0.1% increase year-on-year. This indicates that overall consumer demand has stayed relatively steady despite short-term setbacks. Within the retail sector, auto and motorcycle sales fell significantly, totaling NT$69.9 billion in May. This was an 18% decrease from the previous year. Ministry official Huang Wei-chieh noted that many dealers plan new model launches and promotions in June and July. They hope these efforts will revive sales in the coming months.
Meanwhile, consumers seem cautious about big-ticket items such as cars and jewelry. Yet, retail sales growth appeared in other areas. General merchandise sales climbed 6.4% year-on-year, with department stores benefiting from the Dragon Boat Festival and Mother’s Day shopping boosts. Other segments also saw positive growth. Convenience stores rose 7.3%, food and beverage retailers grew by 9.4%, and hypermarkets increased sales by 11.5%. Supermarkets also enjoyed an 8.6% rise in sales.
Taiwan’s foodservice sector delivered solid growth in May, posting NT$90.2 billion in sales. Restaurant sales went up by 6.1%, beverage shops by 9.2%, and catering services by 6.8%. Total food and beverage sales for January to May reached around NT$446 billion, a 4% increase from last year. In the wholesale market, sales climbed 5.8% to NT$1.14 trillion. Machinery and equipment wholesalers led this growth, expanding 22.5%, driven by strong demand for AI and cloud technology devices. Some wholesalers also increased inventory ahead of a temporary pause in U.S. tariffs.
However, wholesale sales of automobiles and motorcycles dropped by 16.8%. Meanwhile, building materials declined 7.6%, and chemical materials fell 6.5%, showing some unevenness in the sector. Overall, Taiwan’s retail sales growth faced some pressure in May, yet certain sectors maintained solid momentum. This mixed picture reflects ongoing economic challenges and opportunities for recovery.
