Italy’s retail sales decreased by 0.8% month-on-month in December 2025, reversing a 0.5% rise in each of the previous two months and defying market expectations of a 0.4% increase. Sales for both food (-0.9% vs 0.4% in November) and non-food products (-0.7% vs 0.6%) declined. On an annual basis, retail sales rose by 0.9%, easing from a 1.3% growth in each of the previous two months, largely due to a slowdown in non-food sales (0.3% vs 1.4%), while food sales picked up (1.7% vs 1.3%). Among non-food items, the largest gains were observed in pharmaceuticals (4.6%) and perfumery and personal care (3.8%), while the sharpest declines were recorded in household tools and hardware (-3.4%) and footwear, leather goods and travel goods (-3.3%). The value of retail sales increased across all distribution channels: large-scale distribution (0.6%), small retail outlets (0.8%), out-of-store sales (0.8%), and e-commerce (3.1%). Overall, retail sales in 2025 were 0.8% higher than in 2024.