Latvia's retail market recorded one of its strongest consumption signals of recent months in July. Retail turnover in constant prices increased by 7.0% compared with July 2025, according to new data published by the Central Statistical Bureau on 28 August.
Growth has accelerated noticeably: retail sales increased by 3.3% in May, 4.8% in June and 7.0% in July.
Which sectors are growing fastest?
- hardware, tools, building materials and plumbing – +17.3%;
- mail-order and internet retail – +14.8%;
- ICT equipment in specialised stores – +10.4%;
- clothing, footwear and leather goods – +10.1%;
- pharmaceutical and medical goods – +8.6%;
- automotive fuel – +8.2%.
Non-food retail excluding fuel grew by 9.6%, while food retail increased by a more moderate 2.6%.
A sharp reversal in ICT retail
ICT equipment provides one of the most striking changes. In June, specialised ICT retail was still down 8.2% year on year. In July it was already 10.4% higher than a year earlier.
Compared with June alone, ICT retail rose 12.8%. This may indicate renewed demand for computers, communications equipment and other technology, although one month is not enough to establish a long-term trend.
What does the building-materials surge indicate?
Retail sales of hardware, tools, building materials and plumbing increased 11.8% in June and accelerated to 17.3% in July.
This is a significant signal for suppliers serving renovation, home-improvement and construction markets. It should not, however, automatically be interpreted as evidence of a construction boom, as retail data can include purchases by both households and businesses.
E-commerce remains a growth leader
Mail-order and internet retail was 14.8% higher than a year earlier. Growth was even stronger in June at 18.6%, meaning online sales remain one of the fastest-growing parts of Latvian retail.
Are Latvian consumers spending more?
The figures show a clear improvement in retail activity. Importantly, the CSP data are calculated in constant prices, meaning the 7% increase cannot simply be explained by higher prices.
One strong month is still insufficient to confirm a sustained consumption boom. The key question will be whether the momentum continues into autumn.
The most important business signal is not just the overall 7% increase, but the strength of technology, building materials and e-commerce – categories where purchases can often be postponed.
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