Overview
In a striking development for the European retail sector, Cyprus recorded an 8.2% year-on-year increase in retail trade volume in December 2025, registering the strongest annual growth among EU member states. This performance sets Cyprus apart from its peers, including Bulgaria and Luxembourg.
EU Retail Trade Performance
While Cyprus experienced robust gains, the broader euro area saw a modest 0.5% decline in retail trade volume in December 2025 compared to November. Similarly, the overall EU figures indicated a 0.5% drop month-on-month, despite previous increases in November. The calendar-adjusted retail sales index, however, managed to edge upwards by 1.3% in the euro area and by 1.7% across the EU on an annual basis.
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Category Trends
Disaggregated data revealed mixed trends across retail categories. In the euro area, retail volumes for food, drinks, and tobacco experienced a slight monthly increase of 0.1%, while non-food product sales (excluding automotive fuel) dropped by 1.2%. Automotive fuel sales at specialized outlets remained stable. Conversely, within the EU, food, drinks, and tobacco sales recorded a minor downturn of 0.1%, and non-food products fell by 0.9% month-on-month, although automotive fuel sales enjoyed a modest rise of 0.1%.
Annual Performance by Sector
On an annual scale, the euro area saw a 1.2% increase in food, drinks, and tobacco sales, along with a 1.6% upsurge in non-food items. Automotive fuel sales in specialized stores in the euro area increased by 0.9% year-on-year. Across the EU, similar trends were observed with food, drinks, and tobacco sales advancing by 0.8%, non-food products witnessing a 2.0% rise, and automotive fuel sales climbing by 2.4%. Among individual member states, Cyprus led the annual growth rankings, followed by Bulgaria and Luxembourg, while Slovakia, Romania, and Estonia recorded declines.
Conclusion
The data underscore a stark contrast in retail performance at the close of 2025. Cyprus not only outshone its European counterparts with its stellar 8.2% annual growth but also highlighted underlying vulnerabilities in other EU markets. For industry leaders and investors, these trends serve as a critical indicator of evolving market dynamics across the continent.
