Retail’s share in household spending continues to fall in the EU

By: Trademagazin editor Date: 2024. 10. 02. 13:53

In 2023 spending in retail declined for the second year in a row, with EU citizens spending 33.9% of their money in this channel on average.

This article is available for reading in Trade magazin 2024/10

This proportion was the highest in Hungary, where consumers spend every second euro in retail, reveals a new study on retail in Europe by GfK.

“Despite inflation and rising food prices, in 2023 the share of household retail spending returned to nearly pre-pandemic levels. This is due to the fact that the European population mainly invested their money in retail, especially during the pandemic in 2020-2021, as it was impossible to access most leisure experiences and services. This trend is now reversing, as Europeans are looking to catch up and spend again on experiences and travel”,

says study lead Philipp Willroth.

Purchasing power grew again last year

Following a 7% rise of the purchasing power of EU citizens in 2022, net disposable income rose significantly again in 2023. Last year the average per capita purchasing power in the EU was EUR 19,786, which was a nominal increase of 5.5%. Retail sales also grew by 5.5% in the EU-27. Although inflation in the 27 EU counties had already fallen in 2023, it remained relatively high at 6.4%; the forecast for 2024 is 2.7%. In Europe there has been a marked shift towards private label products to save money, but this trend is more common in countries with greater purchasing power than in Eastern Europe, e.g. Spain, the Netherlands, the UK, and Germany, where the share of private label FMCG purchases exceeds 40%. //

The increase in retail sales in Europe, 2023 (like-for-like, in percentage)