Trade Association reports “mixed” first week of Advent

The start of the hot phase of the all-important Christmas business did not go well for a large number of retail companies in Germany. This is the result of an industry survey, the results of which were published by the German Retail Association (HDE) on Sunday. According to this, 51 percent of the companies surveyed rated “the sales development in the week before the first Advent as unsatisfactory”.

The frequencies in the inner cities have not yet recovered from the consequences of the Covid 19 pandemic

According to the association, business in the past week has often been sobering, especially in the city centers. According to the survey, “60 percent of inner-city retailers were dissatisfied with customer frequency,” explained the industry organization. HDE General Manager Stefan Genth sees a general problem here: “In our inner cities, customer frequency has collapsed with the pandemic. Visitor numbers have not recovered to this day. That makes things difficult for retailers in inner-city locations,” he emphasized in a statement.

The entire industry is also affected by the adverse framework conditions and the currently low buying mood of consumers. “The Christmas business is affected by the energy crisis. The trade is feeling the insecurity of the consumers”, stressed Genth.

“Racing of hope for the next few weeks”: The HDE observes increasing demand on the first weekend in Advent

However, the association also registered positive aspects: the “revival of business on the first weekend in Advent” gives hope for the further course of the most profitable time of the year, emphasized the HDE. This development is a “ray of hope for the coming weeks”.

There are also quite a number of companies that are currently experiencing encouraging demand. Around thirty percent of those surveyed reported “good development and satisfaction with sales,” explained the HDE. Positive assessments came primarily from retailers in the consumer electronics, cosmetics and food sectors.

As early as mid-November, the association had forecast a mixed Christmas business for the German retail trade. In concrete terms, the HDE expects total sales in the industry to reach EUR 120.3 billion in November and December. Compared to the same period of the previous year, this would mean nominal growth of 5.4 percent. In real terms – i.e. adjusted for the effects of price developments – retail would have to accept a 4.0 percent drop in sales.

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