Germany’s retail sales fell 3.4% month-on-month in July 2026, following an upwardly revised flat reading in the previous month and missing market expectations for a 0.4% increase. It marked the steepest decline since July 2021, with food sales dropping 0.8% and non-food sales falling 4.8%. Online and mail-order sales also contracted 5.6%, pointing to weaker e-commerce demand. On an annual basis, retail sales declined 2.5%, reversing an upwardly revised 0.6% increase in June.