Although falling spending on both food and non-food items has contributed heavily to this dampened figure in November, Spain still saw strong consumer goods spending in the third quarter of the year.
Spanish year-on-year retail sales inched up 1% in November, down from a 3.4% rise in October, as well as below analyst expectations of 2.8%, according to the National Statistics Institute (INE).
This was the slowest growth in retail trade since June this year, mainly dampened by food spending decreasing to 1.5% in November, from 2.2% in October. Spending on non-food products also fell to 1.2% last month, from 5.9% in October.
Month-on-month retail sales dropped 0.6% in November, down from 0% in October.
For the first 11 months of the year, Spanish retail trade increased 1.5%, compared to the same time last year.
Consumer goods spending in Spain remains robust in third quarter
Spain also experienced an uptick of 4.5% on consumer goods’ spending in the third quarter of the year, compared to Q3 2023, according to NIQ’s quarterly Retail Spending Barometer. Spending on durable and technological goods also increased 4.2% during Q3 2024, compared to the same quarter last year.
Antonio de Santos, the retail vertical director of NIQ in Spain, said, on the company’s website: “During the third quarter, the FMCG market in Spain maintained a trend of price moderation, which significantly contributed to the increase in demand. Nearly all sections of packaged and fresh products have shown positive growth in volume thus far this year.
“The overall economic progress, rising household incomes, reduced mortgage expenses, and a strong employment market have all played a role in driving an upward trajectory in consumer purchases. Despite ongoing uncertainties in the macro environment, we maintain a cautiously optimistic outlook on the market’s short and medium-term evolution.”
Fernando Gómez, the retail head of GfK in Spain, also said on the NIQ website: “The technology and durables market experienced growth in the third quarter, contrary to the anticipated slowdown by analysts.
“Spanish consumers are showing a continued interest in spending on equipment, health, leisure, and cultural products, indicating a promising outlook for a robust fourth quarter, barring any unforeseen disruptions like the recent flooding disasters in the south of the country.”
However, while falling product prices are benefiting consumers, they are also leading to some anxiety among retailers, especially in the face of increased competition from Asian brands looking to establish themselves in the Spanish and wider EU market.
These brands often offer a wider range of products than established brands, at cheaper prices. The rise of online shopping has also dealt a significant blow to physical retailers, especially over the holidays.
