Retail sales in Taiwan decreased by 3.4% year-on-year in January 2026, reversing a 0.9% gain in the previous month. This marked the sharpest decline in retail activity since July 2025, as sales dropped for general merchandise (-6.5% vs 0.4% in December 2025) and motor vehicles, motorcycles, and related parts and accessories (-5.8% vs 10.2%). At the same time, sales fell further for food, beverages, and tobacco (-5.8% vs -2.7%), household appliances and goods in specialized stores (-3.6% vs -2.2%), and fuel and related products (-8.2% vs -7.3%). In contrast, retail activity rose for pharmaceutical and medical goods (0.4% vs -2.7%) and construction materials in specialized stores (6.7% vs 1.6%). Retail trade not in stores or stalls also accelerated (10.3% vs 0.4%), alongside electronic shopping and mail-order houses (13.0% vs 1.9%). On a monthly basis, retail activity dropped 1.7% in January, easing from a 2% decline in the previous month.