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Cyprus Retail Sector Sees Strong 2025 Growth: Value Up 6.1%, Volume Up 7.9%

Strong Overall Performance

The retail sector reported a significant uplift in 2025, with total turnover growing by 6.1% in value and 7.9% in volume compared to 2024, according to data released by the national Statistics Agency. This surge underlines a sustained boost in consumer activity and an expanding market environment, affirming the resilience of the retail landscape.

Sector-Specific Highlights

Analyzing the data by category provides further insights into the drivers behind the growth. The specialized food, beverages and tobacco retail outlets led the value increase with a notable 14.5% rise. Concurrently, the apparel and footwear segment demonstrated exceptional performance in volume, also recording a 14.5% increase. These results reflect both heightened consumer spending and a pronounced shift in purchasing patterns during the period.

Momentum At Year End

The upward trend continued in the final month of the year. In December, the Value Turnover Index rose 5.8% year on year. The Volume Turnover Index for retail trade increased by 8.9% compared with December 2024, according to industry reports. The figures indicate that retail activity remained strong at the end of the year.

Eurobank Plans €1 Billion Investment In AI And Digital Banking By 2028

Eurobank plans to invest about €1 billion in technology from 2025 through 2028, its largest technology investment program to date. The Banking Forward strategy focuses on digital banking, artificial intelligence, customer experience and a “phygital” model combining digital services with face-to-face support.

Digital Banking Dominates Customer Activity

Digital channels already account for 96% of Eurobank transactions, with 61% completed through the Eurobank Mobile App. Among customers aged 35 and under, digital adoption reaches 94%.

Customers make about 574 million annual logins across e/m-banking and more than 1 million digital transactions each day. During the first half of 2026, one in three banking products was acquired digitally.

AI Moves Into Everyday Banking

Eurobank is expanding the use of AI through tools including EVA, its digital customer assistant, and myEVA, an AI-powered voice assistant for employees. The technology is also being applied to mortgage assessments, customer feedback analysis and contractual documents.

The bank’s technology architecture is built around five areas: digital channels, customer experience orchestration, data and AI, core banking, and infrastructure and cloud. About 50% of its applications and digital channels are already cloud-based.

Investment Extends Beyond Technology

The program is intended to reshape how Eurobank operates, combining automation and AI with employee development and human support. The bank says the approach is designed to improve services while maintaining access to face-to-face banking when customers need it.

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