HDE survey shows low mood
Christmas business is not getting going yet
December 10, 2023, 11:21 a.m
For German retailers, the Christmas business so far is no reason to celebrate. Before the second weekend of Advent, the mood had even dropped. There are fewer customers coming into the stores than a year ago. Only one in six retailers is satisfied so far. But the association doesn’t want to write off the season yet.
For many it is the most important time of the year – but among German retailers the mood is sinking. After the Christmas business recently picked up speed, in the week before the second Advent, only just under a quarter of retailers in Germany were satisfied with pre-Christmas sales. As a current trend survey by the German Trade Association (HDE) among more than 350 retail companies shows, almost 60 percent of those surveyed are dissatisfied with the sales development in the past week.
“The week before the second Advent was noticeably weaker in retail than the first week of Advent. Many retailers are now pinning their hopes on the final spurt before the festive season,” said HDE Managing Director Stefan Genth. According to the survey, one reason for the weak development is low customer frequency, especially in the city centers. More than two thirds of inner-city retailers reported a drop in visitor numbers compared to the previous year.
Overall, only 15 percent of the retailers surveyed are satisfied with how the Christmas business has gone so far. Sales impulses have recently been generated for retail companies in the areas of food, shoes, sporting goods and household goods. Retailers are looking forward to the coming weeks of Christmas business with subdued expectations. According to the HDE survey, only just under a fifth of those surveyed expect positive developments in the next few weeks.
HDE Managing Director Stefan Genth was less pessimistic. In the second half of December, the ever-approaching holidays usually provide additional sales impetus, he explained. “If the festive mood increases in the near future, it can noticeably boost Christmas business.”
The HDE expects total sales of just over 120 billion euros in this year’s Christmas business in November and December. Compared to the previous year, that would be an increase of 1.5 percent – taking price developments into account, a decrease of 5.5 percent.