Retailers are slowly but surely gaining confidence for the upcoming holiday season, despite a lack of initial momentum according to the HDE retail association. After only 15% of retailers expressed satisfaction with their sales in November and December, last week saw a third of retailers rating the sales trend as positive.
Even with half of the retail companies still unsatisfied, there's a sense of anticipation for the traditional sales boom during the Advent period. The HDE expects sales of just over 120 billion euros for Christmas business in November and December, marking a 1.5% increase compared to the previous year.
Urban retailers have been particularly optimistic, with sectors like food, electronics, toys, and sporting goods witnessing the most growth. On the other hand, clothing and shoe retailers in city centers have been facing low footfall and subpar visitor numbers.
Despite these trends, it's important to remember that the retail sector's confidence is still a mixture of positive and cautious sentiments. Consumer confidence in Germany has slightly recovered throughout the year, with consumer spending showing an uptick during the holiday season.
However, ongoing economic uncertainties and geopolitical conflicts have kept retailers on the edge. They're managing expectations cautiously, planning for slightly increased consumer spending but not expecting significant growth.
One area of growth that retailers can rely on is e-commerce and mail-order sales. E-commerce and mail-order sectors showed a 10% increase through September and are expected to continue rising due to the restructuring of a large mail-order company.
Overall, while the retail sector is showing signs of recovery, it's essential to approach the upcoming holiday season with a cautious and realistic outlook.
Sources: [1] Statista. (2022). Retail Sales in Germany 2010-2022. Retrieved December 4, 2022, from [2] Statista. (2022). Consumer Confidence in Germany 2010-2022. Retrieved December 4, 2022, from [3] HDE Retail Association, quote from Stefan Genth, Managing Director, November 24, 2022.
