Retail Sector Posts Strong Performance In 2025, Paving The Way For Future Growth

by THEFUTURE.TEAM

February 5, 2026

Robust Growth Across Key Metrics

The retail sector experienced one of its strongest years in 2025, recording significant gains in both value and volume indices. This dual growth reflects an increase in not only the number of products sold but also their overall market value, underscoring a dynamic shift in the industry’s performance.

Sector’s Impact On The Economy

Today, retail is recognized as a pivotal industry within the broader economic landscape. As the largest employer in the market, retail not only drives job creation but also ranks second in its contribution to national GDP. Business experts point to an anticipated continued upward trajectory into 2026, bolstered by the influx of new international brands and the expansion of existing retail establishments. In Cyprus, for instance, retail now contributes roughly 16% to the GDP while employing about 20% of the workforce. The food segment alone is generating nearly 3 billion in annual turnover, and when combined with apparel, electronics, DIY, and other retail categories, the numbers are truly impressive.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Statistical Insights And Market Trends

According to the latest report from the Statistical Service of Cyprus, the period from January to December 2025 witnessed a 6.1% rise in the Value Index of Retail Turnover and a 7.9% increase in the Volume Index compared to 2024. Notably, specialized stores dealing in food, beverages, and tobacco led value gains with a 14.5% increase, while clothing and footwear posted a similar 14.5% rise in volume. In December alone, the Value Index surged by 5.8% and the Volume Index by 8.9% year-on-year.

Optimistic Outlook For 2026

Marios Antoniou, Secretary General of the Pan-Cypriot Retail Association (PASYLE), asserted the rising prominence of retail in the national economy. Following tourism, retail now stands as the largest sector in this regard, with strong investor confidence demonstrated by active waitlists at shopping centers and the announcement of two upcoming retail complexes in Limassol. These developments vividly illustrate the robust market sentiment from both local and foreign investors.

With these encouraging trends, industry leaders forecast positive growth rates for 2026, suggesting that the retail sector is well-positioned to continue its upward momentum and further solidify its economic significance.

The Future Forbes Realty Global Properties

Mercedes-Benz Posts Higher Profit Despite China Slowdown

by THEFUTURE.TEAM

July 29, 2026

Mercedes-Benz reported stronger-than-expected second-quarter results, lifting its shares on Tuesday despite mounting pressure from Chinese automakers and a weaker outlook for sales and revenue.

The earnings provided a boost for Europe’s auto sector, where manufacturers continue to grapple with tariffs, softer demand and intensifying competition from Chinese rivals. Volkswagen, Mercedes-Benz and BMW have all accelerated restructuring efforts in response.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Cost Discipline Lifts Quarterly Profit

Mercedes-Benz shares rose as much as 5.9% following the results before trimming gains to trade 3.5% higher by 1118 GMT. The company reaffirmed its profit margin guidance for its core passenger car business after reporting an adjusted return on sales of 4.0% for the second quarter, above market expectations and within its 3% to 5% target range.

“In an environment where some automakers are ringing alarm bells on their competitive positioning, Mercedes delivered a clear and confident message,” Morningstar analyst Rella Suskin said.

Second-quarter operating profit increased 22% to €1.5 billion ($1.7 billion), despite a 3% decline in revenue. Lower administrative and research and development costs, together with strong performances from the financial services and vans divisions, supported earnings, while the results also included a €131 million gain related to the planned sale of leasing subsidiary Athlon.

China Remains The Key Pressure Point

Despite stronger profitability, Mercedes continues to face a challenging market environment. Sales in China fell 30% during the second quarter, prompting the company to abandon earlier expectations for stable car sales and group revenue. It now expects both to decline slightly from a year earlier.

BMW also lowered its outlook in June following a deeper-than-expected slowdown in China, highlighting the pressure facing Germany’s premium carmakers. At the same time, Mercedes said Chinese manufacturers are increasingly expanding into European markets, although Chief Executive Ola Kaellenius said their focus remains on higher-volume segments rather than the premium market.

“But that is not a reason to sit back and be relaxed,” he said.

Manufacturing Shift Continues

Mercedes is also reshaping its manufacturing footprint. The company said its German factories will undergo a more aggressive push toward leaner production, although it declined to provide further details while talks with labour representatives continue. Production is also being expanded in lower-cost Eastern European locations, including Hungary, where the company is increasing capacity at its Kecskemet plant, as well as in Poland.

Chief Financial Officer Harald Wilhelm said the full-year margin for the passenger car division is expected to come in at the lower end of the company’s guidance range, reflecting a higher share of electric vehicle sales in Europe, which remain more expensive to produce and continue to weigh on profitability.

“We must continue to work flat out to reduce costs so that we can remain competitive on the prices of our products,” Kaellenius said.

Breaking news