Retailers Expect Little Help from Christmas Sales
The business situation for Germany’s retailers has improved somewhat. The indicator rose from -13.5 points* in October to -8.8 points in November. According to the latest ifo survey, this is the first increase in three months. “Despite the slightly improved mood among retailers, demand – which has been weak all year – remains a challenge even in the period of strong sales during the run-up to Christmas,” says ifo expert Patrick Höppner. Christmas business is therefore unlikely to provide a surprisingly strong boost this year. Expectations for the coming months remain pessimistic.
The situation at furniture stores and DIY stores remained particularly tense. At the start of the Christmas season, retailers of consumer electronics and toys also assessed their business situation as predominantly gloomy. Food retailers and car dealers fared better.
“As in the economy as a whole, price increases in retail are likely to continue to weaken in the coming months,” Höppner says. Price pressure is decreasing particularly in the food sector; price increases have recently been observed more frequently in supermarkets than in other retail sectors.
*Seasonally adjusted
