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German retailers see little festive cheer

December 10, 2023

Christmas sales in Germany have been sluggish, with retailers expressing dissatisfaction. In terms of volume, sales are down on the previous year.

A woman walks in front of a store deorated with christmas trees in city center of Cologne
Footfall has dropped off, as well as the volume in sales for many retailersImage: Ying Tang/NurPhoto/picture alliance

German retailers on Sunday said sales ahead of Christmas had been disappointing, with a "noticeable" lack of momentum in the first weeks of Advent.

Although sales figures are up on the previous year, the volume of sales showed a marked dip in real terms because of rising inflation.

What did retailers say?

From more than 350 retail companies that were surveyed, some 60% expressed dissatisfaction with the latest trend in sales, the German Retail Association (HDE) said.

"The second week of Advent was noticeably weaker in the retail sector than the first week of Advent. Many retailers are now pinning their hopes on the final spurt before the festive season," HDE managing director Stefan Genth said.

Footfall in city centers is also down, with two-thirds of city retailers reporting fewer customers than the previous year.

The HDE forecast total sales of just over €120 billion ($129 billion) for this year's Christmas business in November and December.

This corresponds to an increase in sales of 1.5% — effectively down on the previous year in terms of sales volume.

"Overall, only 15% of the retailers surveyed are satisfied with how the Christmas business has gone so far," the HDE report said.

Some room for optimism

Retailers were said to be looking forward to the coming weeks with "muted expectations," the survey said. Just under a fifth of retailers who were surveyed expect a positive development.

However, the HDE's Genth was less pessimistic, pointing out that, in the second half of December, the ever-approaching holidays usually provide additional sales impetus.

"If the festive mood increases in the near future, it can noticeably boost Christmas business," he said.

While you're here: Every Tuesday, DW editors round up what is happening in German politics and society. You can sign up here for the weekly email newsletter Berlin Briefing.

Richard Connor Reporting on stories from around the world, with a particular focus on Europe — especially Germany.
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