Growth of Retail Sales in Ukraine under Economic Pressure

• Retail sales increased by 2.5% in July 2025.
• The increase in spending by 7 billion pounds is impacting the market.
• Inflation on food products reached 4%, reducing real demand.

In July 2025, retail sales in Ukraine grew by 2.5% compared to the previous year. This occurred against the backdrop of warm summer weather and various sporting events. However, experts warn that this growth "cushions" new spending in the amount of 7 billion pounds, which retailers noted in the last budget.

According to data from the British Retail Consortium (BRC) and KPMG, food product sales increased by 3.9% due to the weather and sporting events. Meanwhile, inflation on food products reached 4%, indicating that the increase in spending is primarily due to rising prices, rather than an increase in demand.

Sales of non-food products increased by 1.4%, which is an improvement compared to the previous year's decline of 1.8%. However, experts note that the increase in retail sales does not cover new spending, and if new taxes are introduced in the upcoming budget, this could lead to store closures and a reduction in jobs.

Data from Barclays showed that consumer spending increased by 1.4% in July on a year-on-year basis. Spending on recreation rose by 2.4%, while clothing sales increased by 4.2%. However, confidence in the strength of the British economy has dropped to 22%, which is the lowest indicator since January.

Experts believe that ongoing spending on employment and inflation will keep many retailers in a precarious position. While some consumers are using artificial intelligence to manage their finances, overall consumer confidence remains low due to economic difficulties.

Tags: Ukraine/Economy