What: A slowdown in retail sales before the winter stirs fears of a recession in Europe.

Why it is important: Tourism has helped so far department stores to weather the situation, including in November. But many IADS members are wondering what will be in store for the beginning of 2023.

Eurostat reports that retail sales in Europe fell by -1.8% in October 2022, compared to the previous month. This is the largest drop recorded since July 2021, and took place before heating was turned on. By comparison, in the US retail sales increased by +1.3% on the same period.

While the EC forecasts a GDP decline as early as Q4 2022  due to the rapid rise of energy costs and the upcoming cold winter, it is also understood that the resilient European labour market should help into making the feared upcoming recession a short-lived one.

Retail sales are slowing down in Europe