Andorra Retail Sales Plunge 13.5% in February 2026 Amid French Border Road Closure

Andorra's retail sales plunged 13.5% in February 2026 compared to the previous year, driven by the French RN-20 road closure from 31 January to 9 March after a landslide that curbed visitor arrivals and business activity.

Department of Statistics data show the downturn affected all segments: food sales dropped 12.1%, other products 7.3%, and fuels 24.1%. Inflation-adjusted volumes contracted further to 14.3% overall, with food at 14.3%, other products 9.6%, and fuels 16.7%. From January, sales fell 13.7% month-on-month.

Retail jobs mirrored the trend, declining 4.6% year-on-year, with the workforce holding steady at 58.8% women and 85.5% full-time positions. The figures, based on a sample of representative companies, highlight the economic impact of such border disruptions.

Large retail outlets fared relatively better, with sales down 2.1% at current prices—food off 5% but non-food up 1.5%. At constant prices, the decline deepened to 4.7%, food dropping 7.4% and non-food 0.9%. Against January, sales there slid 14.9%, while employment edged up 2.4% annually, at 64.2% women and 91.5% full-time.

These retail strains coincide with first-quarter 2026 active businesses totaling 14,028, up 5.2% or 690 from Q1 2025 but down 0.2% or 23 from end-2025—the first quarterly drop since 2018, even after pandemic-era gains. The shift stems from 238 openings against 261 closures, an unusually high closure tally that outpaced new registrations and signals a slowdown in business creation.

Professional, scientific, and technical services led with 3,430 establishments, followed by retail trade at 3,320 and information/communications at 1,373. Retail and information sectors posted the biggest net losses—21 and 8 establishments, respectively—partly offset by a 32-establishment gain in professional services. Closures rose 71.7% from Q4 2025, while openings fell 37.5%.

Some 65% of businesses remain in Andorra la Vella, Escaldes-Engordany, and La Massana parishes. Canillo stood out with the only meaningful quarterly rise of 1.4%, against slight declines elsewhere. Despite the quarterly pause, the annual trend stays upward, though future data will clarify if this marks a broader shift.