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The data showed that despite a 5.5 percentage point increase in purchasing power and retail turnover surplus, European citizens reduced their purchase spending in the sector by 0.5%.
The share of European income going to the retail sector is close to pre-pandemic levels, currently at 33.9%, and Portugal is one of the few European countries where private consumption in this sector will grow by 6.6% in 2023, according to GfK analysis.
The data showed that despite a 5.5 percentage point increase in purchasing power and retail turnover surplus, European citizens reduced their purchase spending in the sector by 0.5%.
Among European countries, Germany has the lowest spending rate on the sector at just 27%, while Eastern European countries tend to spend around half of their budgets on such retail.
GfK’s analysis shows that private consumption has been affected by high inflation, the retail sector has been pressured by high food and energy prices and the geopolitical crisis, all of which have led to changes in the consumption behavior of European consumers.
However, despite the decline in retail sales, consumers’ interest in purchasing services and experiences, such as travel, is growing.
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