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.
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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.
