In the most important time of the year for business, the retail sector is experiencing a slight upward trend. However, he cannot compensate for the consequences of the economic crisis. The industry has adjusted to meager sales.
After a slow start, the Christmas business in the German retail sector gained further momentum on the third Sunday in Advent. This was reported by the German Retail Association (HDE), citing feedback from retailers. In the week before the third Advent, "the positive trend" continued.
This confirms that the buying mood of the Germans brightened slightly in time for the hot phase of the Christmas business. However, at an extremely low level. The barometer of the market research institute GFK for consumer sentiment in December had recently risen by 1.7 to minus 40.2 points and thus remained close to the historic record low of 42.8 points that was reached in October. The main reason for the extremely poor consumer mood is the high inflation, which has recently stagnated.
For many companies, the latest improvement is not yet sufficient for a "positive interim balance" of the Christmas business, the HDE said. According to this, more than a quarter of the trading companies are satisfied with the course of business so far in what is traditionally the time of the year with the highest sales, the rest, however, are not yet. The view of the remaining days until Christmas therefore remains "exciting", explained the industry association. "Great hopes" rested on the final sprint.
According to the survey, around a third of the companies were satisfied with the business development in the days before the third Advent. Sales went well, for example, in the food trade, where 59 percent drew a positive conclusion for the week. The mood in the clothing trade was also above average, with a satisfaction rate of 40 percent. According to the HDE, the recent wintry temperatures presumably played a role.
According to initial reports from around 400 participating dealers, Saturday was the strongest sales day of this year's Christmas business so far; 70 percent of them were satisfied with the course. Overall, the HDE assumes that the industry will have total sales of around 120 billion euros this Christmas season. Adjusted for price, this would correspond to a decrease of four percent compared to the same period in 2021.
