German retailers apparently suffered a setback in the week before the second Advent. The all-important Christmas business has “lost momentum” in the past few days, said the German Trade Association (HDE) on Sunday. The industry organization referred to the results of a current survey of more than 350 retail companies.
Compared to the previous week, the mood has deteriorated
According to this, only just under a quarter of the companies surveyed were satisfied with the sales development in the second week of Advent. After the previous week, around a third were still in a positive mood. According to the association, almost sixty percent of companies were “dissatisfied” with sales in the past few days.
“The week before the second Advent was noticeably weaker in retail than the first week of Advent,” admitted HDE Managing Director Stefan Genth. “Many retailers are now pinning their hopes on the final spurt before the holidays.”
Weaker footfall in city centers is putting a strain on sales
The weaker frequencies in city centers have recently once again caused concern. “Over two-thirds of inner-city retailers” reported “decreased visitor numbers compared to the previous year,” the association explained.
According to the HDE, only 15 percent of the companies surveyed are satisfied with the way the entire Christmas business has gone. However, the assessments varied depending on the segment.
“Recent sales impulses have been generated for trading companies in the areas of food, shoes, sporting goods and household goods,” explained the HDE. “The Christmas business got off to a good start in some areas of retail. Overall, the time of the year that traditionally has the highest sales still falls short of expectations,” summarized Genth.
Only just under a fifth of retail companies expect positive developments in the coming weeks
Retailers’ expectations for the remaining sales days before the turn of the year are currently extremely cautious. “According to the HDE survey, only just under a fifth of those surveyed expect a positive development in the next few weeks,” said the association.
The industry organization had already predicted a mixed Christmas business for local retailers a few weeks ago. For the months of November and December, sales totaling around 120.8 billion euros are expected, and thus a nominal sales increase of 1.5 percent compared to the same period last year, the association explained in mid-November.
However, the expected increase can only be attributed to price increases. In real terms – i.e. adjusted for the effects of price developments – the HDE expects a decline in sales of 5.5 percent.