Romania sees large decline in retail sales in January 2026
Retail sales decreased by 6.5% in Romania in January 2026 compared to the same month last year. The drop constitutes the largest decline in retail sales since the pandemic, amid a general decrease in purchasing power due to persistent high inflation and increased taxation.
The decline in consumption affects the entire economic chain, from producers and processors to distributors, according to Feliciu Paraschiv, vice-president of the National Association of Small and Medium Retailers in Romania, cited by Economedia.
“We are entering a clear stage of consumption contraction. It is the largest drop since the pandemic,” he said during a debate organized by the Coalition for the Freedom of Trade and Communication on Friday, March 20.
According to him, annual data confirm the same trend, despite a marginal increase in turnover.
“Even 2025, compared to 2024, did not make us very happy, although INS data show a growth of 0.2%. This growth refers to turnover. But we should not be misled, because if we take into account an inflation rate of 7.8% as an average for the entire year, we observe a decrease of 7.6% in volumes. In fact, we collected 0.2% more, but the quantities sold are 7.5–7.6% lower,” explained the retailers’ representative.
He added that the downward trend continues in the first months of 2026, as purchasing power is eroded by inflation.
“Although wages will increase in 2026 by 5–6%, inflation will almost entirely consume this advance. In real terms, incomes will be 4–6% lower. People are buying less, choosing cheaper options, and postponing major purchases. We have entered the so-called down-trading process, when buyers move from more expensive products to mid-range or cheaper products, toward retailers’ private labels, and seek offers and promotions,” he showed.
At the same time, Romania’s retail market presents a paradox. Although the online market exceeded EUR 10.5 billion in 2025 and is estimated to reach EUR 12.8 billion this year, retail sales decreased 9% at the start of 2026.
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