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.<\/p>\n
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<\/a>.<\/p>\n \u201cWe are entering a clear stage of consumption contraction. It is the largest drop since the pandemic,\u201d he said during a debate organized by the Coalition for the Freedom of Trade and Communication on Friday, March 20.<\/p>\n According to him, annual data confirm the same trend, despite a marginal increase in turnover.<\/p>\n \u201cEven 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\u20137.6% lower,\u201d explained the retailers\u2019 representative.<\/p>\n He added that the downward trend continues in the first months of 2026, as purchasing power is eroded by inflation.<\/p>\n \u201cAlthough wages will increase in 2026 by 5\u20136%, inflation will almost entirely consume this advance. In real terms, incomes will be 4\u20136% 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\u2019 private labels, and seek offers and promotions,\u201d he showed.<\/p>\n At the same time, Romania\u2019s 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.<\/p>\n