The Christmas shopping scene in Germany is picking up, according to the Retail Association HDE. Initially, only 15% of retailers were content with their Christmas sales in November and December, but a third of them reported positive trends in the week leading up to the first Advent. HDE's Managing Director, Stefan Genth, noted the improvement, yet acknowledged that there's room for improvement in the coming weeks.
Currently, half of the retailers are dissatisfied with their sales, especially clothing and shoe retailers in city centers. The reason behind this is the low foot traffic, a recurring issue in urban areas. On the flip side, food, electronics, toys, and sporting goods retailers have seen an increase in satisfaction due to strong sales. Moreover, larger companies are generally faring better than their smaller counterparts.
Genth anticipates that while the Christmas business hasn't fully taken off, the coming weeks during the Advent period, known for their high sales, will be profitable for many retailers. The HDE forecasts sales of over 120 billion euros for the Christmas season, a 1.5% increase compared to the previous year.
Retail associations like HDE play a significant role in promoting and advocating for retail businesses in Germany. This year, retail sales are showing some stability, with a slight uptick in consumer spending. E-commerce has been a notable force, growing by 10% through September, and is expected to continue its growth. Grocery stores have also shown strong performance, leading the way with a 5.1% increase in sales.
In contrast, consumer sentiment remains low due to ongoing economic challenges. Despite this, consumers have gradually started loosening their spending restraints and are spending more on premium products. Omnichannel retailing, which incorporates Click & Collect services, has also proved popular, attracting customers to physical stores.
In summary, the current trends indicate a mixed retail landscape. While the e-commerce and grocery sectors are performing well, overall consumer confidence remains subdued, making retailers wary of the future.
