Supply Problems in German Retail Have Worsened
In the run-up to Christmas, delivery problems have worsened significantly for German retail. In November, 77.8 percent of retailers complained that they will not receive all the goods they ordered. The figure was 60 percent in October and 74 percent in September, according to surveys by the ifo Institute. “It looks as though there will be gaps on store shelves over the Christmas period,” says Klaus Wohlrabe, Head of Surveys at ifo. “Consumers will need to show some flexibility when it comes to Christmas gifts.”
“Right now, there’s still sand in the gears of global logistics, with many shipments by sea suffering delays,” Wohlrabe says. All participating toy retailers reported problems, and almost all bicycle retailers (95.8 percent) and car dealerships (93.5 percent) are also affected. Among DIY stores the figure was 93 percent, and among computer retailers it was 91.3 percent. Stocks of all electronic products are proving difficult to replenish.
Against this backdrop, price increases are to be expected. “More than two-thirds of retailers plan to raise their sales prices in the next three months,” Wohlrabe adds.
