retail dissatisfaction
Christmas business loses momentum before the end
12/18/2022 2:22 p.m
The start went quite well at first, but it is now clear that retail sales in the run-up to Christmas will be lower this year than in 2021. Only one in four inner-city retailers is satisfied. And online business is also worse.
The Christmas business obviously loses momentum before the final phase. This is the result of trend surveys by the German Retail Association (HDE). Only a good quarter of the retailers surveyed said they were satisfied with the course of the Christmas business so far.
Stefan Genth is General Manager of the German Trade Association (HDE).
(Photo: picture alliance / Flashpic)
After a comparatively good start, business in the week before the fourth Sunday in Advent was somewhat weaker again, according to the survey of 400 retail companies from all sectors, locations and size classes. “The development of sales and customer frequency fell short of the expectations of many retailers,” explained HDE General Manager Stefan Genth.
According to the HDE, only 29 percent of those surveyed said they were satisfied with the course of business in the week before the fourth Advent. On the other hand, almost half are dissatisfied. Only Saturday was satisfactory from the point of view of 42 percent of the inner-city dealers surveyed. “So far this year, the Christmas business has not gone as well as many retailers had hoped, and there have been no highlights,” explained Genth. “With the ongoing pandemic and the impact of the energy crisis, the framework conditions are extremely difficult.”
Four percent less sales than in 2021
In many places, customer frequency has so far been too weak to be able to boost the Christmas business. “The Christmas business is not over yet. The final spurt is just around the corner,” Genth added, however, with a view to the remaining week before Christmas. He also referred to “the traditionally important time between the years”.
Overall, the HDE expects a total turnover of more than 120 billion euros for the Christmas business in the months of November and December. Adjusted for price, this would be a minus of four percent compared to the previous year. A 4.5 percent decline in sales is also expected for online trading, which had recorded strong growth during the pandemic.