Business at Germany’s Retailers Somewhat Worse
The business situation for Germany’s retailers has deteriorated slightly once again. The indicator fell from -9.8 points* in September to -13.4 points in October. Expectations for the coming months have improved a little, but remain at a low level. “This means that many retailers remain uncertain about how they will fare going into the Christmas season,” says ifo expert Patrick Höppner.
The situation is particularly subdued for furniture stores, DIY stores, and clothing retailers. In the third quarter, these businesses had to contend with less foot traffic, as reported by 58.2% of DIY stores, 73.7% of clothing retailers, and 80.9% of furniture stores.
Overall in the third quarter, 53.8% (Q2: 45.4%) of retailers reported that demand was too low. In addition, the shortage of skilled workers remained a serious problem for 38.5% (Q2: 35.4%) of businesses. “For many retailers, acute personnel problems have become chronic. This means that finding successful strategies for attracting and keeping skilled workers is becoming increasingly important to those companies,” Höppner says.
*Seasonally adjusted
