Cyprus posts second-highest retail trade growth in EU as retail activity surges in August

Cyprus recorded the second-highest annual increase in retail trade volume among European Union member states in August 2026, registering growth of 7.5 per cent compared with the same month a year earlier.

The performance placed Cyprus just behind Sweden, which recorded annual retail trade growth of 7.7 per cent. Estonia ranked third, with an increase of 6 per cent.

The figures, compiled by Eurostat, compare retail trade volumes in August 2026 with those recorded in August 2025 and point to a particularly strong performance by the Cypriot retail sector relative to the wider European market.

Across the European Union, retail trade volume increased by 1.2 per cent year-on-year in August, while the euro area recorded a more modest annual increase of 0.8 per cent.

Cyprus’s 7.5 per cent rise was therefore more than six times the EU-wide rate.

The annual figures showed Sweden recording the strongest increase among member states for which data were available, followed by Cyprus and Estonia.

At the other end of the scale, retail trade volume declined in four EU member states. Malta registered the sharpest fall, at 2.4 per cent, followed by Spain with a 0.6 per cent decline, Italy with a 0.5 per cent drop and Germany with a 0.4 per cent decrease.

The broader euro area figures showed that annual retail growth was supported by stronger sales in both food-related and non-food categories, although automotive fuel sales moved in the opposite direction.

In the euro area, the volume of retail trade in food, drinks and tobacco increased by 1.6 per cent compared with August 2025. Non-food products, excluding automotive fuel, recorded a 1.7 per cent increase.

By contrast, retail trade in automotive fuel in specialised stores fell by 3.7 per cent year-on-year.

The EU-wide breakdown followed a similar pattern, although non-food retail recorded an even stronger increase. Food, drinks and tobacco retail volumes rose by 1.4 per cent year-on-year, while non-food products excluding automotive fuel increased by 2.2 per cent.

Automotive fuel sales in specialised stores declined by 1.9 per cent across the EU compared with a year earlier.

The figures also show that the strong annual performance came against a relatively subdued monthly backdrop. Seasonally adjusted retail trade volume increased by only 0.1 per cent in both the euro area and the EU in August compared with July.

That modest monthly rise followed significant declines in July, when retail trade volume fell by 0.6 per cent in the euro area and by 0.5 per cent across the EU.

Within the euro area, food, drinks and tobacco retail volumes increased by 0.1 per cent between July and August, while non-food products excluding automotive fuel rose by 0.5 per cent. Automotive fuel sales in specialised stores, however, fell by 1.9 per cent over the same period.

Across the EU as a whole, food, drinks and tobacco retail increased by 0.3 per cent month-on-month, while non-food products excluding automotive fuel rose by 0.5 per cent. Automotive fuel sales declined by 1.3 per cent.

The monthly results varied considerably between individual member states.

Romania recorded the strongest month-on-month increase in total retail trade volume among countries with available data, at 2.3 per cent. Sweden followed with a 1.4 per cent increase, while Germany recorded a 1.3 per cent rise.

The largest monthly deterioration was recorded in Luxembourg, where retail trade volume fell by 9.4 per cent. Malta followed with a 1.9 per cent decline, while Latvia registered a 1.4 per cent fall.

Taken together, the figures highlight the contrast between Cyprus’s exceptionally strong annual retail performance and the relatively limited expansion seen across the EU as a whole. While European retail activity recovered modestly in August following July’s declines, Cyprus stood out with a growth rate of 7.5 per cent, placing it second among the member states and well above both the EU and euro area averages.

The August results therefore position Cyprus among the EU’s strongest-performing retail markets on an annual basis, with its growth rate substantially exceeding the broader European trend.

By fLEXI tEAM