Latvia’s retail turnover rose by 4.5% year-on-year in September 2025, driven by steady economic growth and lower-than-projected inflation that strengthened consumer purchasing power, 1188.lv reported based on Central Statistical Bureau data.
Retail Sector Growth and Consumer Spending in Latvia
Economic growth outpaced spring forecasts through the first nine months of the year. Households continued to build their deposit balances, gradually restoring savings to pre-pandemic levels seen five years before Covid-19, according to economist Māra Paula, as cited by 1188.lv. Income growth remained resilient despite slowing from the previous year, allowing residents to maintain savings while slightly increasing household expenditures.
Retail turnover recovered quickly following storm disruptions in August that forced several stores to close for multiple days. Seasonally adjusted retail turnover in current prices increased by 2.2% in the third quarter compared to the preceding three months. Consumer sentiment during the third quarter proved less pessimistic than in prior periods. Paula attributed this shift to reduced value-added tax on specific food items, a drop in fuel excise taxes, or expectations surrounding pre-election commitments.
Retail sales data for September 2025 highlights distinct category trends across the market. Food product retail grew by 0.3% compared to September 2024. Non-food product sales, excluding automotive fuel, surged by 9.3%. Conversely, automotive fuel retail turnover declined by 0.8% over the same twelve-month period.
Early Holiday Displays and Supply Chain Realities
Retailers introduced Christmas merchandise to store shelves significantly earlier than usual this year. Paula noted that this trend reflects both merchants’ efforts to distribute workloads evenly across the quarter and logistical complications caused by ongoing geopolitical tensions impacting freight transport.
Frequently Asked Questions About Latvia’s Retail Sector
What caused the drop in automotive fuel retail sales in September?
Automotive fuel retail turnover dropped by 0.8% in September 2025 compared to the same period in the previous year, according to Central Statistical Bureau figures cited by 1188.lv. The data does not provide a specific consumer or market reason for this particular decline.
Which retail category experienced the highest growth in September?
Non-food product retail, excluding automotive fuel, recorded the strongest growth at 9.3% year-on-year in September 2025. Food retail grew at a much slower pace of 0.3% over the same timeframe.
How do household savings compare to pre-pandemic levels?
Households actively restored depleted savings throughout 2024 and 2025. According to sector accounts data from the Central Statistical Bureau, savings levels relative to disposable income are steadily approaching the average seen five years prior to the Covid-19 pandemic.
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