The new election and the associated question of the political future in Germany are affecting consumers and their shopping behavior.
60 percent of Germans expect that the early federal elections on February 23, 2025 will influence the economic situation in the country, according to a current survey of 1,200 people commissioned by the German Trade Association (HDE). However, those surveyed not only expect impacts on the overall situation in the country, but also draw personal consequences. Almost a third of people assume that the elections will also change their personal shopping behavior.
“At the beginning of the year, hopes for overall economic development were based on private consumption,” said HDE President Alexander von Preen. “However, crises and uncertainty have led to a clearly noticeable reluctance to buy. And this weak consumer mood among consumers will continue at the end of the year.”
There is no positive upturn from the upcoming new elections either, because according to the current survey, 52 percent of people in Germany rate their personal mood with regard to the current economic and political situation at the end of November as bad. Confidence and optimism with regard to the new elections have not yet emerged because this “requires clear and reliable concepts in the election campaign,” says von Preen. “For many, the new elections alone are apparently not a sufficient reason for more optimism. Many people are keeping their money together during this phase of uncertainty and are currently planning to spend less. Improving your mood is not a sure-fire success.”
The political situation in Germany and the upcoming new election also dominate people’s conversations in the run-up to Christmas. 68 percent of people say this topic is discussed at gatherings with family and friends. According to HDE, Christmas business is suffering from the current political standstill and is currently experiencing no significant momentum. The connection between political uncertainty and economic restraint becomes clear once again.
Despite a consistently high savings rate, many people in Germany are willing to spend on gifts and decorations in the run-up to Christmas. “People give gifts, but overall they keep their money together,” explains von Preen. At the end of November, 45 percent of those surveyed had already purchased Christmas gifts and accessories from stationary stores. The local shops benefited from their attractiveness, as two thirds of buyers rated the shopping experience as good or very good in terms of offerings and atmosphere.
The survey was carried out by GfK’s Consumer Panel Services on behalf of the German Trade Association. Between November 21st and 28th, 2023, 1,200 representatively selected people were surveyed online, representing the population by age, gender and region. The results show that stationary retail remains a strong factor for Christmas business even in economically challenging times.