People’s reluctance to consume in view of high inflation has caused problems for retail in Germany for the second year in a row. According to an initial official estimate, they will also lose sales in 2023. Adjusted for price increases (real), retailers had 3.1 percent less in their coffers than in the previous year, as the Federal Statistical Office reported on Friday in Wiesbaden. However, including price increases, their sales are 2.4 percent more than in 2022.
Even if it is an estimate, “the numbers show that it was a difficult year for many retailers,” said HDE spokesman Stefan Hertel. “There remains hope that things will go better in 2024. Many experts “We assume that we have passed the peak in inflation rates.”
The HDE had recently forecast sales of 649 billion euros for 2023. In nominal terms this is three percent more than in the previous year, but when adjusted for prices it corresponds to a minus of four percent.
Christmas business is traditionally particularly important for retailers. However, according to HDE, many companies were dissatisfied with sales in November and December. As a result, business was even worse than in 2022. According to a survey by the HDE, only one in six retailers was satisfied.
According to preliminary figures from statisticians, real sales in November were 2.4 percent below the comparable value from the previous year. In nominal terms, including price developments, revenues were 0.1 percent higher than in November 2022.
Less sales in establishments and in online retail
Higher inflation rates reduce the purchasing power of consumers, who can afford one euro less. People’s financial leeway is shrinking and they are turning their backs.
According to preliminary data, the real decline in sales was particularly large at 7.3 percent between January and November for furnishings, household appliances and building supplies. Internet and mail order sales, which boomed during the corona pandemic, recorded a decline of 3.7 percent compared to the same period last year.
According to the information, real sales for foodstuffs over the course of the year were roughly at the level of 2015, which was low compared to the Corona years. However, things went significantly better for textiles, clothing, shoes and leather goods with a real sales increase of 3.6 percent from January to November.
Last year was the second year in a row with real sales losses for retailers. Inflation did weaken over the course of the year. However, the inflation rate reached an average of 5.9 percent, the second highest value in a year as a whole in reunified Germany. A stronger price increase was recorded in 2022, at 6.9 percent. (dpa)