Increased retail sales observed in Latvia data
Retail trade growth in June 2025 was primarily driven by several key sectors, according to recent data releases. The overall retail sales rose 0.6% month-over-month (m/m), rebounding from declines in April and May.
The "control group," which excludes volatile sectors, also showed a growth of 0.5%. However, there were some notable exceptions, such as home furniture and electronics/appliance stores.
Motor Vehicles and Parts Lead the Way
The key driver of retail trade growth in June was the motor vehicles and parts sector, which saw a sales increase of 1.2% m/m. This growth was likely due to the recovery of the automotive industry following the pandemic-induced slowdown.
Building Materials and Garden Equipment Also Shine
Another sector that performed well was building materials and garden equipment, with sales increases of 0.9% m/m. This growth reversed some prior softness and supported the overall retail rebound. The hardware-related retail sector, which includes building materials and garden equipment, grew by 0.9% m/m.
Miscellaneous Store Retailers and Health and Personal Care Stores Also Contribute to Growth
Miscellaneous store retailers and health and personal care stores also contributed to the growth in retail trade. Sales at miscellaneous store retailers rose by 1.8% m/m, while sales at health and personal care stores, which cover pharmaceutical and medical goods, increased by 0.5% m/m.
Electronics and Appliance Stores See Slight Declines
On the other hand, electronics and appliance stores, including information and communication equipment and electrical household appliances, saw slight declines of 0.1% m/m. This decline was partly attributed to tariff-driven price increases, which dampened demand for these categories.
Retail Trade Turnover
The total retail trade turnover at current prices, not taking into account seasonality, increased by 0.8% in June 2025. Retail sale via mail order houses or via the Internet had a drop of 3.6%. Retail trade in non-food products increased by 5.9%, with retail sale of hardware, instruments, construction materials, and sanitary equipment experiencing a growth of 3.0% in June 2025.
The most notable turnover growth was registered in retail trade in pharmaceutical and medical goods, with a growth of 3.8% in June 2025. Retail sale of food products declined by 3.6%, while retail trade in non-food products, excluding retail sale of automotive fuel, increased by 1.4%. Retail sale of automotive fuel reduced by 0.7%, and retail trade in food products fell by 0.1%.
In summary, the retail trade growth in June 2025 was mainly driven by motor vehicles, building materials/hardware, and strong performances by miscellaneous and health/personal care stores. However, sales in electronics, communication equipment, and electrical appliances softened slightly due to price headwinds. The total retail trade turnover at current prices rose by 1.5%.
The growth in the motor vehicles and parts sector, where sales increased by 1.2% m/m, played a significant role in the overall retail trade growth in June 2025. This growth could be attributed to the recovery of the automotive industry following the pandemic-induced slowdown. In contrast, electronics and appliance stores, such as information and communication equipment and electrical household appliances, saw slight declines of 0.1% m/m, mainly impacted by tariff-driven price increases.
