Page 83 - SE Outlook Regions 2024

5.0 Real economy outlook 5.1 Real economy - Albania
5.1.1 Retail
Albania’s retail sales grew strongly in the first half of 2023, and are expected to have received a further boost during the peak summer months of July and August, when tourist arrivals reached new records.
However, there may be a slowdown in 2024 as overall economic growth slows, partly as a result of an expected continuation of the decline in exports seen in H2 2023.
The latest data available shows Albania’s retail trade volume index, estimated based on the deflated sales value index, rose by 5.8% y/y in the second quarter of 2023 to reach 124.3 points, according to statistics office Instat. Quarter on quarter, the index rose by a seasonally adjusted 1.3%.
This follows annual growth of 4.7% of the index in the first quarter of the year.
A report from international real estate firm Colliers noted the market’s resilience since the start of the war in Ukraine, which triggered rises in both energy prices and interest rates, with a strong performance in 2022 that it forecast would continue in 2023. It also noted a strong pipeline of ongoing projects bringing new international brands to the market.
The most high profile arrival in 2023 was H&M, which drew a crowd of over a thousand when it opened its first store at the East Gate Mall in Tirana in March.
As the tourism sector expands, French Lagardère Travel Retail and Kastrati Group have partnered to expand duty-free retail at Tirana Mother Teresa International Airport and key Albanian tourist sites.
Meanwhile, existing brands continue to expand. Supermarket chain Spar announced the opening of its 80th store in the country in autumn 2023.
83 SE Outlook 2024 www.intellinews.com