In November and December, German retail sold around 120 billion euros. Adjusted for prices, according to the HDE trade association, this means a decline in Christmas business of five percent.
German retailers recorded predominantly lower sales in the 2023 Christmas business than last year. “Unfortunately, business was significantly worse than in 2022 and went without much stimulus,” said Stefan Genth, general manager of the German Trade Association (HDE), to the dpa news agency. According to the information, two thirds of the retailers reported worse sales than in the previous year’s Christmas business and were correspondingly dissatisfied. In a survey conducted by the association among more than 350 retail companies, only one in six said they were satisfied.
From the HDE’s perspective, the 2022 Christmas business was already not good. For November and December 2023, the HDE now expects sales of around 120 billion euros. Adjusted for prices, this corresponds to a decline of five to six percent, says Genth.
Recession, inflation and wars dampen consumption
The HDE managing director attributes the development primarily to the reluctance of consumers. Recession, high inflation and wars “caused great uncertainty among consumers and had a very negative impact on consumer behavior,” said Genth. In addition, the retail sector itself had to contend with some difficulties due to rising energy costs and higher purchasing prices.
However, Genth pointed out that the Sunday shopping hours had been well received in large cities. With a view to the different areas of retail, the association also recorded quite different developments. Business in the sports retail sector was particularly good. “People are inclined to do something for themselves. This trend from the Corona period has now been confirmed again,” says Genth. Retailers in the clothing sector were less satisfied. The industry was unable to achieve the usual sales and particularly felt the uncertainty of the population.
Smaller businesses also rely on online trading
From the retailers’ perspective, online business was also disappointing. According to the Federal Association of E-Commerce and Mail Order Germany (bevh), online retail was hardly able to benefit from the Christmas business. The trade association is nevertheless satisfied with the development: Genth sees a sideways movement at a high level. Sales are 40 percent higher than in 2019. Many smaller and medium-sized businesses have now discovered online business.