Monday 07 December 2020
Significant loss of customers
Consumer mood also falls in the run-up to Christmas
The partial lockdown and the persistently high number of corona infections cloud the consumer mood even in the Advent season: the trade association's consumption barometer has dropped to its lowest level in six months. The industry has long since written off consumption records.
Rising numbers of corona infections dampen consumer sentiment in December, which is particularly important for retailers. This was worse than it has been for six months, as the retail association HDE announced in its monthly survey of 2000 consumers. "Despite the Christmas season, no consumption records are expected, the propensity to buy will decline in December," it said. "Rather, the partial lockdown limits the options for consumption."
A part of it is shifting to online trading, but purchases remained very limited, especially in the areas of tourism and gastronomy. The days before the second Advent ran a HDE survey of 500 companies a little better than the previous week. Above all, dealers from Christmas-related industries such as toys, furnishings, accessories, but also consumer electronics and food reported increasing customer numbers.
Compared to the same period last year, however, there is still a significant decline in customers. The HDE assumes that the gloomy mood will continue. The extension of the partial lockdown, which was decided by January 10, had not yet been recorded by the consumer survey. "The progress in the provision of vaccines is also only partly optimistic, as a widespread effect is only foreseeable in months," said the industry association.
Vaccine is also only partly optimistic
In December, consumers were also pessimistic about economic developments in Germany. In particular, consumer sentiment reflected the expectation that the partial lockdown would have a negative economic effect. According to the HDE, income expectations are also characterized by increasing skepticism, although the labor market situation is currently unchanged and stable and the outlook is rather positive with declining unemployment in December. But consumers were not convinced of this development, according to the HDE.
It is to be expected that the deterioration in consumer sentiment will continue. Because the index had not yet taken into account the extension of the partial lockdown, as the survey period ended before the decision, according to the HDE. The progress made in the provision of vaccines is only partly optimistic, because a widespread effect cannot be foreseen for months.
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