German retail sales experienced a sharp drop in July, largely driven by a steep decline in fuel purchases following the expiration of a government tax discount on motor fuel, according to provisional data released by Destatis.
Total retail turnover fell by 3.4% month-on-month in real terms. The reading fell significantly short of market forecasts, which had anticipated a modest monthly growth of 0.4%. On an annual basis, overall retail sales contracted by 2.5% compared to July 2025.
Sales at petrol stations dropped by 9.1% month-on-month after the temporary tax relief measures implemented in May and June came to an end. Compared to the same month last year, petrol station sales declined by 9.3%.
Broader retail sectors also registered reduced consumer spending throughout July:
* Non-Food Retail: Sales dropped 4.8% compared to the previous month.
* E-Commerce and Mail-Order: Sales fell 5.6% month-on-month and dropped 0.8% compared to July 2025.
* Food Products: Real sales decreased 0.8% from June and dropped 0.3% year-on-year.
Destatis also revised the real monthly change for June to 0%, up from a previously reported contraction of 0.7%.
