German Retail Sales Unexpectedly Fall

Germany’s retail sales dropped 2.0% month-over-month in March 2026, significantly missing market expectations for a milder 0.1% decline and deepening from a downwardly revised 0.3% fall in the previous month. This marked the third consecutive monthly contraction and the sharpest decrease since October 2022, as heightened uncertainty linked to the Middle East conflict weighed on consumer sentiment and spending. Food sales led the downturn, falling 2.7%, while non-food sales slipped 1.0%. In contrast, online and mail-order trade showed resilience, rising 3.0%. On an annual basis, retail sales also fell 2.0%, swinging from an upwardly revised 0.9% increase in February and undershooting forecasts for a 0.5% gain.

Germany’s retail sales dropped 0.6% month-over-month in February 2026, missing market expectations for a 0.2% rise and extending a revised 1.1% drop in the previous month, as still-elevated inflation and cautious consumer sentiment weighed on spending. The decline was driven by a 1.4% fall in food sales. In contrast, non-food sales rose 0.7%, while online and mail-order trade increased 0.6%, suggesting some resilience in discretionary and digital spending. On an annual basis, retail trade grew 0.7%, easing from a downwardly revised 1.0% gain in January

Germany’s retail sales shrank 0.9% month-on-month in January 2026, missing market expectations for a milder 0.2% drop and shifting from an upwardly revised 1.2% rise in the previous month. The pullback was largely driven by a 1.7% decline in non-food sales, suggesting households turned more cautious at the start of the year. Food sales were flat, indicating stable demand for essentials, while online and mail-order sales increased 2.5%, pointing to continued strength in e-commerce despite broader weakness. On an annual basis, retail trade rose 1.2%, easing from an upwardly revised 2.5% gain in December, which had marked the strongest pace in five months. In 2025, retail sales were up 2.7%.