According to data from the National Statistics Institute (NSI), retail sales in Spain rose by 1% year-on-year in November, less than the 3.4% growth in October and below analysts' expectations of 2.8%, Euronews reported.
It was the slowest retail growth since June this year, depressed mainly by a decline in food spending to 1.5% in November from 2.2% in October. Non-food spending also fell to 1.2% last month from 5.9% in October.
On a monthly basis, retail sales fell 0.6% in November from 0% in October.
For the first 11 months of the year, retail sales in Spain increased by 1.5% compared to the same period last year.
According to NIQ's (a global market research firm) Quarterly Retail Spending Barometer, Spain also saw a 4.5% increase in spending on consumer goods in the third quarter of the year compared to the third quarter of 2023. Spending on consumer durables and technology also increased by 4.2% in Q3 2024 compared to the same quarter last year.
Antonio de Santos, NIQ's retail analyst in Spain, said on the company's website:
"In the third quarter, the FMCG market in Spain maintained the trend of moderate prices, which significantly contributed to the increase in demand. Almost all sections of packaged and fresh products have seen positive volume growth so far this year."
"General economic progress, rising household incomes, reduced mortgage costs and a strong labour market have all played a part in the upward trajectory of consumer purchases. Despite continued uncertainty in the macro environment, we maintain a cautiously optimistic outlook for near- and medium-term market developments," De Santos added.
Fernando Gomez, head of retail at GfK in Spain, also stated on the NIQ website, "In the third quarter, the technology and durables market grew, contrary to the slowdown expected by analysts."
"Spanish consumers have shown sustained interest in spending on equipment, health, leisure and cultural products, indicating promising prospects for a robust fourth quarter, barring unforeseen disruptions such as the recent floods in the south of the country."
However, while falling product prices are good for consumers, they are also causing some anxiety among retailers, especially in the face of increased competition from Asian brands looking to establish themselves in the Spanish market and the EU market as a whole.
These brands often offer a wider range of products than the established brands at lower prices. The rise of online shopping has also dealt a significant blow to physical retailers, especially during the holidays. | BGNES
