European Retail Sales Recovery Continues but Polarisation Persists

Eurostat data released today (July 17) shows that retail sales volumes in Europe continued their recovery in the three months to May. For the EU as a whole, sales volumes were up by 1.8% on a year earlier and they have now increased by 2.4% since the Eurozone crisis low in the three months to December 2012.

The recovery is severely polarised between the fast growing central European countries and non-Euro northern European countries such as the UK and Sweden on the one hand and the slower growing Eurozone countries on the other. Amongst the Eurozone economies, Ireland stands out as an above average performer and spending growth in France is rather higher that weak GDP and survey data might suggest.

Dr Neil Blake, Head of EMEA Research at CBRE, commented “Although some of the Eurozone countries continue to struggle, we are starting to see some really impressive growth rates in parts of Central Europe and in the UK, Sweden, Ireland and Turkey. In these countries, growth is sufficient to offset any impact on retail property from the expansion of e-commerce and is starting to soak up some of the surplus space left by the recession.

“Sales growth of 1.5% in France at a time when the economy as a whole is barely expanding is also encouraging news for French retailers and international retailers considering a move into the French market”.