Retail Purchasing Power in Europe Still Marked by Sharp Differences

Luxembourg tops the ranking for retail purchasing power in Europe. NIQ’s new study on retail purchasing power in Europe shows that average spending potential across the continent amounts to 6,714 euros per capita.

However, there are significant differences between the 25 countries included in the study. With €12,518 per capita, Luxembourg clearly leads the ranking, while Serbia records the lowest retail spending potential. In addition to these national differences, the study also reveals pronounced disparities within countries at the regional level. In total, consumers in the 25 European countries covered by the study have nearly €3.5 trillion available for retail spending. This corresponds to an average of €6,714 per capita. Luxembourg stands out with more than 86 percent above this European average, followed by Switzerland with €12,080 per capita and Denmark with €9,452.

“Northern and Western European countries dominate the upper part of the ranking. However, several of Europe’s largest retail markets fall slightly below the continental average in per capita terms. Germany, Spain and Italy all sit under the European benchmark, despite their substantial total market volumes. This shows that market size and per capita purchasing power often diverge. At the same time, regional spending patterns and concentration levels differ markedly across countries, with major metropolitan areas concentrating a disproportionately high share of retail potential. For retailers, this makes it essential to look beyond national averages and focus on regional dynamics,” explains Filip Vojtech, retail expert in NIQ’s geomarketing department.

Overall, 12 of the 25 countries included in the study show above-average per capita retail purchasing power, while 13 countries remain below the European average. At the lower end of the ranking, Eastern and Southeastern European countries dominate. Serbia, with €3,849 per capita, records the lowest retail purchasing power, equivalent to just over 57 percent of the European average. Beyond national averages, retail purchasing power in Europe varies significantly across regions.

In many countries, capital cities and major metropolitan areas outperform their surroundings, often by a wide margin. In France, for example, Paris reaches €12,944 per capita, while the neighboring department of Seine-Saint-Denis records just €6,314, which is less than half the value of the capital. A similar pattern can be observed in the United Kingdom: central London areas, such as the City of London, achieve up to €15,785 per capita, whereas regions such as Birmingham reach only about €5,846 per capita.