Retail in Germany did somewhat better business again in September after a setback in August. Sales exceeded both August of the current year and the level of the same month last year, as the Federal Statistical Office announced based on preliminary results.
Adjusted for price increases (real), revenues were 0.2 percent higher in both periods under review. Including price increases (nominal), there was a mini-plus of 0.1 percent compared to the previous month; compared to September 2024, retailers’ revenues rose by 1.7 percent in nominal terms.
Non-food retail sales fell by 0.6 percent (real and nominal) in September compared to the previous month. Compared to September 2024, sales adjusted for price increases increased by 0.2 percent (nominal 1.1 percent). The Internet and mail order trade, which is included in the non-food retail sector, reported an increase in sales of 0.4 percent (real) and 0.6 percent (nominal) compared to the previous month. Compared to September 2024, internet and mail order sales achieved an increase in sales of 3.7 percent (real) and 4.4 percent (nominal).
“German consumption development remains a sluggish affair,” commented chief economist Thomas Gitzel from VP Bank. In his opinion, private consumption lacks the necessary momentum to achieve sustained higher growth.
Overall, the consumer climate is currently clouded: many consumers are holding back on larger purchases and, given the economic downturn, many are worried about their jobs. In addition, many everyday items such as groceries are significantly more expensive than before the corona pandemic. After the Halloween sales driver, retailers are hoping for the traditionally strong Christmas business at the end of the year. (DPA/FashionUnited)