The current rebound in consumption and the concerted action of European countries to limit the effects of the crisis are strong glimmers of hope, according to European Retail Market H1 2020 from one of those agents, BNP Paribas Real Estate. Its European retail industry overview says that the main hope is that the rise in unemployment is short-term and mitigates quickly, because the subsequent impact on household confidence and the evolution of the virus will influence the strength of domestic demand that underpins retail sales.
It notes a 6% decline in European retail sales growth this year, compared with an uptick of 2.7% last year. It also anticipates an uneven recovery, with its retail impact assessment concluding that Germany leads the recovery but with concerns over Italy and Spain returning to pre-COVID-19 consumption levels.
In the meantime, as part of its retail sector overview the E-commerce Foundation predicts online sales across Europe will be up 13% for the year and BNP Paribas Real Estate also points to the introduction of 5G as another boost to online sales going forwards.
In this short retail industry overview, we have selected some of the key retail figures from the latest national, retail sector and continental research by the major international advisors, painting a mixed picture of the challenges and potential for growth.
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