The start of the new year did not leave German retailers optimistic. In January they reported both a deterioration in the current business situation and clouded expectations, as the Munich Ifo Institute announced on Tuesday in its survey. “Reluctant consumers and a lack of skilled workers will probably continue to pose challenges for many retailers in 2024,” said Ifo expert Patrick Höppner. Accordingly, more than half of retailers complained about sluggish demand. 32.7 percent reported difficulties in recruiting skilled workers. Over a fifth were also affected by delivery problems.
The situation in the consumer electronics, clothing and bicycle trade has worsened, as the survey shows. It is also viewed more pessimistically in the food retail sector. The environment at furniture stores remains particularly gloomy. There have been improvements in the assessment of the current situation in the retail trade of computers, software and accessories, in toy stores as well as in drugstores and hardware stores. Last week, the president of the HDE industry association was optimistic about 2024: “The current year will most likely be better for retail than the last,” said Alexander von Preen. Sales are expected to increase by 3.5 percent in nominal terms compared to the previous year; in real terms, this corresponds to an increase of one percent, according to the forecast.