Dhe Christmas business has so far been rather disappointing for the retail trade. After gaining momentum in the past few weeks, it was somewhat weaker again in the week before the fourth Advent, the German Retail Association (HDE) announced on Sunday in its current trend survey of 400 companies.
Only a quarter of the traders surveyed were satisfied with the course so far. “The Christmas business lost momentum in the past week. The development of sales and customer frequency fell short of the expectations of many retailers,” explained HDE General Manager Stefan Genth. Many companies would now pin their hopes on the week leading up to the holiday season and the traditionally important time between the years. “The final sprint is just around the corner,” emphasized Genth. According to the survey, only 29 percent of the retailers surveyed are satisfied with the sales development in the week before the fourth Advent. However, almost half are dissatisfied.
Overall, the view of the course of the Christmas business so far has been mixed, according to the HDE. Only a quarter of the companies are satisfied. This is particularly the case in the food and clothing sectors, as well as in inner-city retail and larger companies. However, across all sectors, around half of those surveyed were dissatisfied with the course of business to date.
“So far this year, the Christmas business has not gone as well as many retailers had hoped, and there have been no highlights. With the ongoing pandemic and the effects of the energy crisis, the framework conditions are extremely difficult,” said Genth. In many places, customer frequency has so far been too weak to be able to boost the Christmas business.
For the Christmas business in November and December, the HDE expects total retail sales of more than 120 billion euros. Adjusted for price, this corresponds to a minus of four percent compared to the previous year. Online trade, which has been booming in the past two years due to the pandemic, is also weakening. A drop in sales of 4.5 percent in real terms is expected here.
