At the beginning of 2026, the German fashion market presents a differentiated picture of moderate growth, slightly rising prices and a noticeably deteriorated consumer mood. Current data from the Federal Statistical Office (Destatis) and other institutions provide insights into the development of consumer prices, retail sales and key macroeconomic indicators.
It should be noted that the underlying key figures are based on different reporting periods: While price data and sentiment indicators are already available for March, retail sales figures are reported with a delay due to survey and publication cycles and in this case still refer to February. This temporal staggering is common and still allows for a reliable classification of current market trends.
Consumer prices (March)
In March, fashion prices in Germany rose by 1.3 percent year-on-year, according to the Federal Statistical Office (Destatis). Children’s clothing recorded the strongest increase with an increase of 2.5 percent, followed by accessories with an increase of 3.7 percent. Women’s shoes remained almost unchanged at a gain of 0.1 percent – the only fashion category close to deflation. Men’s clothing rose moderately by 0.7 percent, while men’s shoes increased by 2.4 percent.
The overall inflation rate during this period was 2.7 percent.
Retail sales (February)
The overarching category of fashion retail — textiles, clothing, footwear and leather goods combined — grew 0.5 percent in real terms and 1.5 percent in nominal terms in February, according to monthly retail statistics from Destatis. The difference suggests that about a third of the sales growth came from price increases rather than additional volume.
Clothing stores were the strongest performers, growing 1.8 percent in volume and 2.9 percent in nominal terms, outperforming the entire German retail sector, which grew by just 0.8 percent. Watches and jewelry stood out with a nominal increase of 9.4 percent, although volume growth was more moderate at an increase of 2.7 percent – an indication of significant pricing power in the luxury accessories segment.
Shoe and leather goods stores recorded a 2.0 percent decline in volume, with nominal sales also falling 1.4 percent. Textile businesses performed the weakest in real terms, with a decline of 5.0 percent, thus continuing their long-term structural decline. Market stalls offering fashion products recorded a slight recovery with a volume increase of 2.2 percent.
Online and mail order sales grew by 2.5 percent in real terms, according to Destatis. With an index value of 179.4 compared to the base value of 100 in 2015, it remains by far the fastest growing channel. At just 96.2, stationary retail volume remains below its 2015 level.
Macroeconomic environment (March)
According to the European statistics office Eurostat, consumer confidence fell significantly to -13.5 from -9.9 in January.
According to consumer expectations, the GfK consumer climate, which is based on data collected by the German market research institute and evaluated together with the Nuremberg Institute for Market Decisions (NIM), will fall to -28.0 points for April 2026 – the lowest value since March 2024. Compared to the previous month, this is a decrease of 3.2 points.
According to the Federal Employment Agency, unemployment fell slightly to 3.02 million, but remains higher year-on-year. The Eurostat rate is 4.0 percent compared to 3.6 percent a year ago. The euro averaged $1.156, up 7.0 percent from a year earlier, according to the European Central Bank (ECB), reducing import costs for retailers sourcing from dollar-denominated markets.
Conclusion
German fashion retail is growing moderately in terms of volume, while consumers are confronted with declining trust. The significant decline in sentiment – the GfK consumer climate at -28 and the business climate index of the Munich Ifo Institute at 86.4 – points to a challenging second quarter. The bright spot: A stronger euro reduces the burden on import costs, and clothing inflation of +1.3 percent is well below the overall inflation of +2.7 percent. Fashion is therefore gaining in relative value for price-conscious consumers.
This post was created with the help of artificial intelligence.