“Europeans earn more, but spend less in stores”

European purchasing power is rising, but it is becoming less and less certain that retailers will benefit from this. Consumers are spending a larger portion of their budget on services and experiences, while retail’s share of total consumption is falling sharply.

Higher incomes, less shopping

Average purchasing power in the European Union rose by 3.3% last year to 22,425 euros per resident. Central and Eastern Europe, in particular, continued to close the gap, with Poland leading the way (8.8% growth in purchasing power) and Bulgaria bringing up the rear (+7.3%). Belgians and Dutch have more than 27% above the EU average, placing both countries sixth and seventh, respectively, in the European purchasing power rankings.