What: French fashion retail sales decline 1.5% in January 2025, with divergent performance across channels as department stores grow while hypermarkets struggle.

Why it is important: These results highlight how different retail formats are navigating post-pandemic market conditions, with some channels showing resilience while others struggle to adapt.

French fashion retail sales declined 1.5% in January 2025 compared to the previous year, remaining 14% below pre-pandemic January 2019 levels. Channel performance showed significant variation, with department stores growing 1.7%, while hypermarkets experienced a sharp 10.6% decline. Specialised chains remained relatively stable at -0.2%, and multi-brand independents fell 1.7%. The digital transformation continues to impact the sector, with online sales growing 2.4% while physical stores declined 2.6%. Looking ahead, the French Fashion Institute (IFM) presents three scenarios for 2025, ranging from 2% growth to a 2% decline, following a flat 2024 (+0.1%) and recent positive momentum of 2.4% from September 2024 to January 2025.

IADS Notes: The 1.5% decline in French fashion retail sales for January 2025 reveals continuing market challenges, though with notable channel variations. This aligns with December 2024's observations about retail transformation and increased consumer price sensitivity. The contrasting performance between channels is particularly significant, with department stores achieving 1.7% growth while hypermarkets declined 10.6%. The 2.4% growth in online sales versus 2.6% decline in physical stores mirrors August 2024's analysis of how department stores are successfully balancing traditional retail with digital capabilities. The fact that overall sales remain 14% below pre-pandemic levels suggests a fundamental shift in consumer behavior rather than just cyclical changes.

French department store sales rose 1.7% amid a slowdown in January 2025