Eurozone retail sales fell 0.6% month-on-month in July 2026, reversing an upwardly revised 0.2% increase in June and missing expectations for 0.3% growth. It was the first decline since April and the steepest since May 2025, driven by drops in non-food products and fuel sales. Food, drinks and tobacco sales rose 0.4%. Retail sales fell sharply in Germany, Spain and Italy but increased in France and the Netherlands. Annual growth slowed to 0.6% from 1.4% in June, the weakest rate in two years. Italy-specific data in the existing record showed weaker monthly and annual performance, including gains in large-scale distribution and online commerce, although the latest eurozone comparison reported a 0.3% July decline for Italy.