Georgia’s retail sector grew by around 5% in the first half of 2026, according to Levan Karalashvili, head of the Shopping Centers Association and CEO of Tbilisi Central. He said the sector’s growth has slowed in recent years, largely due to relatively low consumer purchasing power.
Karalashvili said higher wages have not translated into stronger consumer demand, partly because inflation has affected purchasing power. He noted that spending on household appliances at Tbilisi Central has grown only by 1–2% year-on-year, indicating that consumers remain focused mainly on essential goods.
He also said the share of non-residents in transactions has declined. While foreigners accounted for around 40–45% of transactions two years ago, their share has fallen to approximately 25–30% this year. Karalashvili said the sector is also seeing limited expansion by existing retail chains and few new international brands entering the Georgian market.
Karalashvili expects the retail sector to finish 2026 with around 5% growth, describing the outlook as one of “cautious optimism.” He said retailers are currently more focused on maintaining their existing positions than opening new stores or expanding their networks.
