EU retail trade: growth continues, Luxembourg on top

According to Eurostat data published in April, the volume of retail trade in the European Union increased again in February 2025. Compared to January, growth was 0.2 per cent for the EU as a whole and 0.3 per cent within the euro area. This reinforces the positive trend of the beginning of the year, especially after the stagnation recorded in January. Consumers are starting to return to the shops and this is being felt in almost all product categories.

The largest increase was recorded in the fuel sector: demand grew by 1.4% in the EU and 0.2% in the euro area. There was also growth in the food, beverages and tobacco segment, which increased by 0.2 per cent in the EU and 0.3 per cent in the euro area. Non-food products (excluding fuel) showed similar dynamics: plus 0.2% and 0.3% respectively.

Among the countries that recorded the highest monthly growth were Cyprus with an increase of 4.7 per cent, Estonia with plus 2.2 per cent, and Lithuania with plus 1.7 per cent. At the same time, a number of countries declined: Bulgaria saw trade volumes fall by 1.7 per cent, the Netherlands by 1.4 per cent and Poland by 1.2 per cent.

Particular attention is drawn to the annual figures, where Luxembourg was the main triumphant. In February 2025, the country's retail trade volume increased by 10.3 per cent compared to the same period in 2024. This is the highest result among all EU countries. In second place was Cyprus with an increase of 8.5%, and the third position was taken by Estonia with an increase of 5.2%. It is noteworthy that Luxembourg has demonstrated strong growth for the sixth month in a row. In November 2024, growth reached an impressive 20.8 per cent, which was a record in recent years.

This growth in Luxembourg can be explained by several factors at once. The easing of inflation has boosted consumer confidence. Local retailers have intensified seasonal promotions and discount campaigns, which strengthened domestic demand. Cross-border tourism also plays a significant role - residents of France, Germany and Belgium traditionally shop in Luxembourg due to competitive prices. In addition, high income levels and favourable tax policies continue to stimulate purchasing activity.

Retail trade is a sensitive indicator of a society's economic health. Growth in the Eurozone, especially in countries such as Luxembourg, indicates a possible turnaround and recovery of the consumer sector. However, the dynamics remain uneven. While some countries are showing a strong recovery, others are facing domestic difficulties and declining consumption. In these conditions, demand stimulation policies should be flexible and take into account the specifics of each economy.

If the trend continues, 2025 could be the start of a new cycle of strong growth for European retail. Luxembourg, judging by the figures, has already moved steadily in this direction.