FX.co ★ German Retail Sales Growth Eases to 1.2% Year-on-Year in January 2026

Germany’s retail sector started 2026 with a slower pace of growth, as January retail sales increased 1.2% year-on-year, down from a 1.5% annual rise recorded in December 2025. The latest figures, updated on 2 March 2026, indicate a modest loss of momentum in consumer spending at the beginning of the year.

Both the current and previous readings are measured on a year-over-year basis, comparing each month to the same month a year earlier. While the data still point to expanding retail activity, the slight deceleration may signal that German consumers are becoming more cautious after a stronger end to 2025. Investors and policymakers will be watching upcoming releases to see whether this softer trend in retail sales persists into the rest of 2026.