Due to high inflation, German retail is expecting the biggest drop in sales this year since the global financial crisis of 2009. Adjusted for inflation (real), it is likely to fall by three percent, the German Retail Association (HDE) predicted in Berlin on Tuesday. It would be the second real decline in a row: in 2022 there was a minus of almost one percent. More than half of the retailers surveyed expect sales to fall slightly or even significantly in the current year. The number of retail businesses is also likely to continue to fall, especially in smaller towns. Thousands of locations and shops had already been given up last year – sometimes because no successors were found for the retired owners. In 2022, retail sales rose by 7.8 percent, as the Federal Statistical Office previously announced. Adjusted for inflation, it fell by 0.6 percent, although the statisticians, in contrast to the HDE, also take pharmacies and gas stations into account.
Decline in sales – retail is bearish – economy
