The current downturn fears and the threat of a crisis have not yet fully cooled consumer activity in North America, and recent data from Spain show a different rhythm. January retail sales rose by 7.1 percent from the previous year, signaling a positive continuation after a sluggish autumn. While this offers a hopeful snapshot, the same report also highlights pockets of concern that remain unresolved in the food sector.
According to the latest figures, food purchases in January fell 0.8 percent from a year earlier, marking the fifth straight month of negative year-over-year growth in this category. Food prices began rising sharply in April and reached new highs in the ensuing months. The good news is that the decline in food purchases is narrowing, dropping from nearly 4 percent in the prior three months to the current 0.8 percent drop. This trend is important for households that are watching food baskets more closely as prices stay elevated.
Viewed overall, the picture is still constructive. Total consumption shows gains that exceed December by more than three percentage points, representing the strongest pace since May 2021. The relative stability is notable when removing fuel-related spending, such as gasoline purchases, which helps isolate changing consumer behavior from energy costs. Importantly, food remains the only segment showing a negative figure, underscoring a sector-specific pressure rather than a general weakness across the retail spectrum.
Sales Campaign
The segment with the sharpest growth is what INE terms “personal equipment” — fabrics, clothing, footwear, cosmetics and related items. Retail sales in this category jumped 23 percent, reflecting a robust demand for discretionary goods during the period. This rebound aligns with typical seasonal spikes that accompany major discount events and holiday shopping, including Black Friday and year-end promotions. The surge in these items underscores how consumer willingness to spend on apparel and beauty products can drive overall retail performance, even amid inflationary pressures in other segments.
Market observers see this pattern as confirming long-standing expectations. Trade associations in Spain have repeatedly pointed to a Christmas campaign that would reach or surpass pre-pandemic levels, a benchmark many markets outside Spain monitor for holiday-season performance. The December period, in particular, saw the strongest gains for large retail formats, while multiple small chains also posted notable improvements, reflecting a broad-based holiday effect across store types.
In terms of where buying happens, the most pronounced gains in January came from smaller chains, which posted a 12.4 percent increase. Large chains followed with 9.8 percent, big stores at 9.1 percent, and single-location businesses showing a smaller but still positive uptick at 2.4 percent. The momentum for large chains and department stores was especially strong in December. Compared with a year ago, single-location businesses faced tougher times, with sales dipping in that period, illustrating how store scale can influence resilience during shifting consumer cycles.