Supermarket stocks under pressure: sharp decline in retail sales in the euro zone

ser_ngmi · 2026-02-13T15:13:40+00:00

In December 2025, retail sales in the Eurozone unexpectedly dropped by 0.5%, raising concerns for supermarkets and retail companies. Non-food items significantly contributed to the decline, while food and drink sales remained stable. Despite consumer confidence rising, the gap between sentiment and actual spending raises questions about future economic support, though growth in annual retail sales suggests a resilient long-term trend.

ser_ngmi

2026-02-13 15:13:40

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The retail sales collapse in the final month of 2025 presents challenges for supermarket stocks and other retail chain companies. According to Eurostat data, sales volumes in the eurozone experienced an unexpected sharp decline of 0.5% compared to the previous month, demonstrating the fragile state of consumer activity ahead of the new year.

Although November showed positive dynamics with a 0.1% increase, the December downturn was an unexpected reversal. Economists had anticipated a more stable trajectory, but statistical data confirmed the hypothesis of vulnerability in local demand. The European Commission and experts note that these indicators will have significant implications for economic growth forecasts, which were expected to rely mainly on household spending.

Non-food goods drove negative December sales dynamics

Analysis of the structure revealed that the biggest decline in supermarket stocks was driven by a drop in non-food categories. This was an unexpected disappointment for retail operators ahead of the key holiday period. In contrast, the food and beverage segment demonstrated greater resilience, showing somewhat positive figures.

Geographical differentiation highlights the unevenness of the economic situation. France, Italy, and Spain recorded decreases compared to the previous month, while Germany, albeit modestly, still showed growth. This variation indicates differing recovery trends across different parts of the eurozone.

Consumer confidence versus actual indicators: forecasts for 2026

Paradoxically, data from the European Commission, presented in early January, indicated an increase in the consumer confidence index in the eurozone. This divergence between sentiment and actual purchasing figures raises questions about consumers’ ability to sustain economic support throughout the upcoming year.

Experts still predict that domestic demand, particularly household spending, will remain the main driver of economic development. On an annual basis, retail sales increased by 1.3% in December, indicating a preservation of the long-term trend despite short-term fluctuations. For investors, supermarket and retail stocks remain a barometer of consumer demand and economic dynamics.

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