Status: 12/22/2022 10:28 am
According to the ifo Institute, the delivery situation in German retail has eased somewhat. However, there will still be “gaps on shelves”. The consumer electronics industry is particularly affected by bottlenecks.
The replenishment problems in the German retail trade eased somewhat in the high-sales Christmas business. In December, 62.2 percent of companies complained about delivery bottlenecks, according to a survey by the Munich ifo Institute. In November it was 71.1 percent.
In addition, traders’ pessimism regarding the coming months continued to decrease. “The relaxation comes at exactly the right time for many retailers,” said Klaus Wohlrabe, head of the ifo surveys. “Nevertheless, there will still be gaps on the shelves.”
Positive trend in toys, bicycles and clothing
The situation has improved noticeably for toy retailers, who generate a large part of their annual sales with the Christmas business. Here, just under a third reported missing goods. The same applies to bicycle dealers and clothing stores. The share in DIY stores also fell below 50 percent.
According to the ifo, however, the trade in consumer electronics remains the hardest hit: almost all retailers reported delivery bottlenecks. The situation also remains problematic for the car trade, the trade in household appliances and for supermarkets. In each of these areas, around 86 percent of retailers complained about missing goods.
HDE considers Christmas business to be “mixed” so far
Supply bottlenecks are one of the biggest concerns for retailers, along with customers’ falling purchasing power due to high inflation. For November and December, the German Retail Association (HDE) expects total sales of more than 120 billion euros in the Christmas business. Adjusted for price, this corresponds to a minus of four percent compared to the previous year.
So far, the Christmas business has been “mixed”, said HDE general manager Stefan Genth of the Bayern media group: “Only a quarter of the retailers are satisfied with the course of business so far during the Christmas period, around half of the retail companies are dissatisfied.” The companies are now hoping for the “traditionally high-sales period between the years”.