Despite omnipresent crises and uncertainties, retail sales in the 27 countries of the European Union (EU) grew strongly last year. This is the result of a study by the market research institute GfK, the results of which were published last Thursday. However, the reason for the significant plus was the high price increases as a result of the Russian war of aggression against Ukraine.
According to GfK, total retail sales in the EU countries reached around EUR 2.83 trillion in 2022, exceeding the previous year’s level by 6.5 percent. At the same time, the inflation rate in the EU rose to a new record of 9.2 percent.
From a regional perspective, retail sales developed very differently: They grew particularly dynamically in the Eastern European countries. Slovakia recorded the largest nominal increase with 23.2 percent, Bulgaria achieved an increase of 19.4 percent, Latvia 17.9 percent and Poland 17.5 percent. There was also above-average growth in France (+7.8 percent), Spain (+9.6 percent) and Portugal (+13.7 percent).
Weak buying mood slows demand in Germany and Scandinavia
Due to the growing reluctance to buy over the course of the year, retail sales in Germany (+1.0 percent) and the Scandinavian countries developed much more subdued. In Denmark (+0.5 percent) and Norway (+0.3 percent) they only just exceeded the level of 2021, in Sweden they even fell slightly (-0.7 percent).
Study leader Philipp Willroth summarized the findings of the investigation: “First the corona pandemic, then the war of aggression in Ukraine – the European retail trade is experiencing one crisis after the other,” he explained in a statement. “Nevertheless, the retail trade recorded a significant increase in sales in 2022. This is mainly due to the increased consumer prices, above all for food and in the FMCG area in general. However, due to the high inflation and the war in Ukraine and the associated economic consequences, people in Europe are still unsettled and tend to be more economical with their money.”