Taiwan's retail sales end nine-year growth streak in 2025

Taipei, Jan. 24 (CNA) Taiwan's retail sales ended a nine-year growth streak in 2025, slipping 0.2 percent from a year earlier as uncertainty over U.S. tariff policies affected demand for durable goods, according to the Ministry of Economic Affairs (MOEA).

Retail sales in Taiwan totaled NT$4.84 trillion (US$153 billion) in 2025, down about NT$9.5 billion, or 0.2 percent, from 2024. Despite the decline, the figure was still the second-highest annual sales total on record.

Chen Yu-fang (陳玉芳), deputy head of the MOEA's Department of Statistics, said sales of cars, motorcycles and related components, which account for 17.4 percent of total retail rales in 2025, fell NT$68.1 billion, or 7.5 percent, from a year earlier.

Many consumers, concerned how their incomes might be affected by American tariff policies that have yet to be finalized, maintained a wait-and-see attitude on large purchases such as automobiles, causing the final tally to slump, Chen said.

In addition, retail fuel sales also dropped NT$14.3 billion, or 5.4 percent, in 2025 due to falling international crude oil prices, the MOEA said.

Excluding sales in the auto and motorcycle sector, overall retail sales rose 1.5 percent year-on-year, Chen said.

Sales at department stores, supermarkets, hypermarkets and convenience stores bucked the broader downturn, rising a combined NT$46.4 billion, or 3.0 percent, and helped cushion the overall decline, she said.

A bright spot emerged toward year-end, as sales of cars, motorcycles and related components in December rose about 10 percent from a year earlier to NT$83.5 billion, reversing a nine-month downturn and signaling a possible recovery in buying, Chen said.

In 2025, revenue in the food and beverage industry rose 2.9 percent from a year earlier to NT$1.07 trillion, even though December revenue fell 1.1 percent to NT$95.0 billion.

The December decline reflected consumers not spending yet for the Lunar New Year holiday, which falls in February in 2026 as opposed to late January in 2025, the MOEA said.

Meanwhile, revenue in the wholesale sector rose 8.7 percent from a year earlier to NT$14.07 trillion in 2025, supported by strong global demand for AI servers and related devices, the ministry said.

Looking ahead, the MOEA forecast retail sales in January to range between NT$424.6 billion and NT$438.0 billion, down 1.8-4.8 percent from a year earlier and revenue in the food and beverage industry to range between NT$96.0 billion to NT$99.2 billion, down 6.1-9.1 percent.

On the other hand, the wholesale sector's revenue is expected to rise 11-14 percent year-on-year to between NT$1.21 trillion and NT$1.25 trillion in January, driven by robust AI-related demand, Chen added.