Share of EU retail spending declines for the second year in a row

The share of private consumption that goes into retail and is not spent on savings, services or leisure is slowly returning to pre-pandemic levels in the European Union. In 2023, a decline was recorded for the second year in a row, with EU citizens now only spending 33.9 percent of their money in retail. The highest share is in Hungary, where every second euro is spent in retail. These are the latest findings published today by GfK in a new, free study on retail in Europe.

Citizen spent less money in retail 

After the retail share of private consumer spending rose in 2020 and 2021 due to the pandemic, it fell again in the last two years. In 2023, EU citizens spent 0.5 percent less money in retail than in the previous year, despite an increase in purchasing power and retail turnover of 5.5 percent respectively.

Catching up

“Despite inflation and rising food prices in 2023, the share of household spending on retail is approaching pre-pandemic levels again,” explains study lead Philipp Willroth. “The reason for this is that the European population mainly invested their money in retail, especially in the coronavirus years 2020 and 2021, as many leisure experiences and services were not possible. This effect is now reversing, as Europeans have some catching up to do and want to experience and travel more again.”

Variation from country to country

However, the retail share of private consumption varies greatly from country to country. In many Eastern European countries, almost every second euro is spent on retail, especially in Hungary (50 percent), Bulgaria (49 percent) and Croatia (47 percent). Last place is occupied by Germany, where only just under 27 percent of consumer spending flows into the retail sector.

In the free European retail study, GfK's Geomarketing department examined the key indicators of the European retail sector for the year 2023. The study offers comprehensive trend analyses for numerous European countries, offering a valuable point of reference for retailers, investors, and project developers.

Find more information in the source description. 

Source: www.gfk.com/press/share-of-eu-retail-spending-declines-for-the-second-year-in-a-row