Merchants express discontentment over holiday shopping experiences
Merchants express discontentment over holiday shopping experiences
German retailers are grumbling about underperforming Christmas sales. According to a survey conducted among about 300 retailers, this holiday season has been disappointing so far. Both customer footfall and overall sales have fallen short of last year's figures for most businesses. Genth, CEO of the German Retail Association (HDE), described the situation as, "The Christmas business came to a halt in many places."
Over two-thirds of businesses reported a decline in customer visits compared to previous years, with a particularly noticeable drop in central city centers and industrial areas. On the other hand, some retailers reported a spike in sales on Saturdays. Even popular retail sectors like toys, books, and electronics only managed to meet sales expectations in 20% of cases.
Retailers are optimistic about the final stretch
Currently, only 17% of respondents are content with the current state of Christmas sales. Those in the watch, jewelry, household items, and food sectors are more optimistic. Genth from HDE commented, "The retail industry is hoping for a strong finish to the year." Traditionally, the days leading up to Christmas are the retail industry's busiest selling days.
The HDE estimated a total turnover of 121.4 billion euros for November and December within the German retail sector - a 1.3% increase compared to the same period last year.
Recently, many employees have seen an increase in their purchasing power thanks to decreasing inflation and generous wage increases. From July to September, real wages for employees grew by 2.9% compared to the previous year, as reported by the Federal Statistical Office. However, employees also experienced real wage losses from late 2021 to early 2023. Economists believe that employees remain cautious due to rising unemployment and concerns about job security.
The struggling economy might be affecting consumer spending, as only 17% of retailers are content with their Christmas sales so far. The retail industry, however, remains hopeful for a strong finish to the year, as traditional pre-Christmas selling days are typically their busiest.