Germany’s retail sales dropped 0.6% month-over-month in February 2026, missing market expectations for a 0.2% rise and extending a revised 1.1% drop in the previous month, as still-elevated inflation and cautious consumer sentiment weighed on spending. The decline was driven by a 1.4% fall in food sales. In contrast, non-food sales rose 0.7%, while online and mail-order trade increased 0.6%, suggesting some resilience in discretionary and digital spending. On an annual basis, retail trade grew 0.7%, easing from a downwardly revised 1.0% gain in January.