HDE: Christmas business “continues to be subdued”

The mood in German retail is still not particularly rosy.

“After the last weeks of Advent were disappointing for the retail sector, the hoped-for revival in Christmas business did not materialize in the week before the third Advent,” admitted the German Trade Association (HDE) on Sunday. The industry organization referred to the results of a current survey of around 300 retail companies.

In the past few days, sales development in local retail has been “at the same level as the previous weeks, which were quite weak,” the association explained. According to the current survey, only 18 percent of the companies surveyed are satisfied with how the Christmas business has gone so far, while 68 percent of the companies were “dissatisfied”.

The outlook is also cautious: only 20 percent of retailers are currently “positive” about the remaining sales days before the festival, according to the HDE.

Retailers complain about weak frequencies and hope for a successful final spurt

“The Christmas business is still lacking momentum. Sales and customer frequency have so far fallen short of retailers’ expectations,” summarized HDE Managing Director Stefan Genth in a statement.

The industry also had to “struggle with weak customer frequencies” last week, the association explained. “Although the city centers were quite well attended in some places, even in the centers the number of visitors did not reach the previous year’s level, as 70 percent of the city center retailers reported.” Overall, the retail trade in toys, watches, jewelry and books has developed “comparatively well” recently.

The industry is now hoping for a successful final spurt. “The week before the fourth Advent is traditionally the busiest time of the Christmas business for many retailers,” emphasized Genth. “In the next few days, the previously subdued pre-Christmas period for retailers can turn into a more lively Christmas business.”

ttn-12