European retail in 2023 and 2024

Consumers in Europe continue to be affected by various crises. After inflation peaked in 2022, 2023 was characterized by an adjustment to the increased cost of living. Additionally, the multiple global crises and the loss of purchasing power caused uncertainty, which led to concerns and a change in consumer behavior.

Although inflation slowed significantly in 2024 and is almost approaching the European Central Bank's 2 percent target, the rise in purchasing power was unable to keep pace with price increases. Economic development in Europe varied, which led to divergent growth in purchasing power. The countries of Southern and Eastern Europe in particular recorded dynamic growth and higher increases in purchasing power compared to the countries of Northern and Western Europe. This strong development in Southern and Eastern European countries is contributing to income convergence in the EU.

In the remainder of this study, we will present detailed information on the development of purchasing power and retail turnover in the individual European countries over the past year. Furthermore, the European states showed considerable differences in inflation rates. In the course of the study, you will also learn which political measures were taken in the individual countries and how these influenced prices.

Consumer reactions to rising prices varied from country to country in Europe. While some saved on purchases or switched to discounters and private labels, others stuck to their usual brands and paid more attention to promotional offers.

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