Retail trade in the eurozone showed only slight improvement in November 2024, with the seasonally adjusted volume rising by 0.1% compared to the previous month, according to Eurostat data released Thursday.
This follows a 0.3% decline in October and a 0.5% increase in September, highlighting inconsistent recovery in the sector. In the broader European Union, retail trade volume grew by 0.2% in November, improving from a 0.1% drop in October and a 0.4% rise in September.
“Total sales remain well below their November 2021 peak and their pre-pandemic trend,” noted Andrew Kenningham, Chief Europe Economist at Capital Economics. He attributed the sluggish recovery to factors including pandemic-induced supply chain disruptions and the inflationary pressures spurred by the war in Ukraine. Despite inflation cooling and the European Central Bank (ECB) adopting a rate-cutting policy, tighter fiscal conditions continue to weigh on consumer spending.
November’s marginal uptick in eurozone retail trade was driven by an 0.8% increase in automotive fuel trade and a 0.1% rise in food, drink, and tobacco sales. However, sales of non-food products, excluding automotive fuel, dropped by 0.6% compared to October.
Across member states, Cyprus saw the largest monthly retail trade growth at 2.3%, followed by Bulgaria (1.3%), and Denmark and Latvia (both 1.1%). Conversely, Belgium recorded the steepest decline at -2.4%, with Germany and Spain each seeing a 0.6% drop. Poland and Finland reported decreases of 0.2%, while France registered a modest 0.3% rise.
With retail trade struggling to regain pre-pandemic momentum, analysts forecast a challenging road ahead for eurozone retailers as they navigate persistent economic headwinds into 2025.
