Though falling spending on each meals and non-food objects has contributed closely to this dampened determine in November, Spain nonetheless noticed robust client items spending within the third quarter of the yr.
Spanish year-on-year retail gross sales inched up 1% in November, down from a 3.4% rise in October, in addition to under analyst expectations of two.8%, in line with the Nationwide Statistics Institute (INE).
This was the slowest development in retail commerce since June this yr, primarily dampened by meals spending reducing to 1.5% in November, from 2.2% in October. Spending on non-food merchandise additionally fell to 1.2% final month, from 5.9% in October.
Month-on-month retail gross sales dropped 0.6% in November, down from 0% in October.
For the primary 11 months of the yr, Spanish retail commerce elevated 1.5%, in comparison with the identical time final yr.
Client items spending in Spain stays strong in third quarter
Spain additionally skilled an uptick of 4.5% on client items’ spending within the third quarter of the yr, in comparison with Q3 2023, in line with NIQ’s quarterly Retail Spending Barometer. Spending on sturdy and technological items additionally elevated 4.2% throughout Q3 2024, in comparison with the identical quarter final yr.
Antonio de Santos, the retail vertical director of NIQ in Spain, mentioned, on the corporate’s web site: “Through the third quarter, the FMCG market in Spain maintained a development of worth moderation, which considerably contributed to the rise in demand. Almost all sections of packaged and recent merchandise have proven constructive development in quantity to date this yr.
“The general financial progress, rising family incomes, lowered mortgage bills, and a powerful employment market have all performed a task in driving an upward trajectory in client purchases. Regardless of ongoing uncertainties within the macro surroundings, we preserve a cautiously optimistic outlook in the marketplace’s quick and medium-term evolution.”
Fernando Gómez, the retail head of GfK in Spain, additionally mentioned on the NIQ web site: “The expertise and durables market skilled development within the third quarter, opposite to the anticipated slowdown by analysts.
“Spanish customers are exhibiting a continued curiosity in spending on gear, well being, leisure, and cultural merchandise, indicating a promising outlook for a strong fourth quarter, barring any unexpected disruptions just like the current flooding disasters within the south of the nation.”
Nonetheless, whereas falling product costs are benefiting customers, they’re additionally resulting in some anxiousness amongst retailers, particularly within the face of elevated competitors from Asian manufacturers seeking to set up themselves within the Spanish and wider EU market.
These manufacturers usually supply a wider vary of merchandise than established manufacturers, at cheaper costs. The rise of on-line purchasing has additionally dealt a big blow to bodily retailers, particularly over the vacations.