Consumption remains fragile in Europe: Germany declines, while retail growth in Eastern Europe continues.

Facebook
LinkedIn
WhatsApp
Telegram
Email
Print

In March, European retail trade returned to showing signs of annual growth, despite a still weak monthly performance and demand that continues to move at different speeds across the EU. According to initial estimates released by Eurostat, retail sales volume increased by 1,2% in the Eurozone and 1,9% across the European Union as a whole compared to the same month in 2025.

The figure represents a reversal from February, when retail trade fell by 0,3% in the euro area and 0,5% in the EU, highlighting a context still characterized by cautious consumption and inflation that continues to weigh on households' purchasing power.

On a monthly basis, however, the picture remains more fragile. Retail volumes fell 0,1% in the Eurozone in March, while in the European Union as a whole, they grew 0,3% compared to February. Sectors related to daily consumption were the main drag on the European market. Sales of food, beverages, and tobacco contracted 0,3% in the Eurozone and 0,1% in the EU compared to the previous month, a sign of continued weak demand for packaged consumer goods.

Automotive fuels sold in specialized stores also declined, falling by 1,6% in the Eurozone and by 0,8% in the European Union, while the non-food sector showed diverging trends: a 0,6% decline in the Eurozone but a 1% growth in the EU.

Marked differences emerge among member states. On a monthly basis, the best performances were recorded by Slovenia (+4,3%), Luxembourg (+4%), and Belgium (+3,6%), while Germany saw the most significant decline, falling by 2,1%. Malta (-0,4%), Italy, and Latvia also recorded negative growth, both down 0,1% compared to February.

In an annual comparison, however, the picture appears more favorable. Sales of food, beverages, and tobacco increased by 0,8% in the euro area and 1% in the EU compared to March 2025, while non-food sales showed a more marked acceleration, with increases of 2,3% in the euro area and 3,1% in the European Union.

The fuel segment, however, remains weak, declining 2,1% in the Eurozone and 0,1% in the EU year-on-year. Among the most dynamic markets are Bulgaria (+12,4%), Hungary (+8,2%), and Malta (+7,5%), confirming sustained growth in Eastern European and Mediterranean countries.

On the other hand, the sharpest declines were recorded in Romania (-2,3%) and Germany (-2%), two markets that continue to suffer from weak domestic demand and the economic slowdown. The data therefore confirm that European retail remains characterized by strong regional disparities and selective consumption, with non-food continuing to drive growth while the grocery sector remains under pressure.

Facebook
Twitter
LinkedIn
Pinterest
Pocket
WhatsApp
Don't miss anything! Sign up to our newsletter.

Leave a comment