Retail activity across Cyprus has picked up markedly in recent weeks, with August historically the second-strongest trading month of the year after December. Early absorption of tourism-related shocks, widespread summer discounts -especially in clothing and footwear- and the start of back-to-school purchases have lifted footfall and kept shopkeepers’ turnovers elevated. At the same time, strong investor interest in retail, tenant waiting lists for mall space, and a wave of expansions and new mall approvals underscore the sector’s resilience and growth outlook.
Strong footfall and turnover across retail categories
Speaking to InBusinessNews and CBN, PASYLE General Secretary Marios Antoniou said the entire retail spectrum—from groceries and apparel to DIY and school supplies—is performing at “quite positive” levels in both visitor numbers and sales. He noted, however, that tourism-related losses were most visible in purely tourist areas (such as Protaras, Ayia Napa, Peyia and Polis Chrysochous) and especially in souvenir shops. “So far, tourism is posting a good year that can be compared with 2024, although last year’s record levels could not be matched,” he added.
Retailers broadly welcomed the return of shoppers to high streets and malls, with consumers actively spending despite earlier inflationary pressures.
Clearance sales and school shopping drive August momentum
Movement in the market is being fuelled by two main factors: clearance sales—mainly in clothing and footwear—which began in July with discounts of 15%–35% (and in some cases up to 70% at peak), and back-to-school buying, where options exist for every budget. “School shopping started this week and will continue through the first two weeks of September before the first bell. There are options for all pockets—for example, school bags from €20 up to €150,” Antoniou said, adding that month-end salary payments would further boost purchases.
Because of inflation in prior years, consumers have become more price-literate and deliberate, comparing prices and making “smart” purchases aligned with their income and budgets.
Investment, expansions and waiting lists signal confidence
Investor appetite for retail, tenant waiting lists at existing malls, the expansion of MyMall Limassol and Neon Mall of Pafos, and the green light for a new mall in Limassol (Agios Athanasios, near Jumbo) all point to strong sector prospects. “Despite international e‑commerce platforms and a plethora of consumer choices, physical stores retain their audience and retail trade proves it has momentum and potential,” Antoniou emphasised, noting an eight‑month run of positive results and a growing “market pie”.
H1 2026 retail data: value up 7.3%, volume up 5.8%
In the first half of 2026, the retail trade turnover value index rose 7.3% year on year, while the volume index increased 5.8%, according to Cystat. The strongest annual volume growth in H1 was in information and communication equipment (20.4%) and “other household equipment” (building materials, carpets, furniture, appliances, lighting—12.3%). On the value side, the biggest gains were in “other household equipment” (11.4%) and in education/entertainment goods (books, stationery, sports equipment, toys) plus information and communication equipment (8.8%).
Context: summer sales peak and stable school prices
Industry bodies report that seasonal sales in clothing and footwear are at their peak, with many stores offering 50%–70% off, while school-supply prices in supermarkets have remained stable versus last year, with promotions and loyalty schemes helping shoppers stretch budgets. Major retailers have also launched back‑to‑school campaigns with vouchers and tech prizes, reflecting the category’s importance to August–September trade
