Retail trade association - Christmas business "expandable": decisive days are coming
Just under two weeks before the festive season, representatives of the Rhineland-Palatinate retail trade have drawn an at best mixed interim balance of the important Christmas business. "There is room for improvement," said Jan Sebastian, President of the Rhineland-Palatinate Retail Association, who runs a jewelry store in Mainz, to the German Press Agency. Business was very weak at the end of November. The beginning of December was also not as strong as hoped. But: "The decisive days are yet to come."
"The reluctance to buy is still there," reported Sebastian. Many people are out and about in the festively decorated city center of Mainz, for example, but people are taking a very close look when choosing gifts. Gifts are still being given, but people are less likely to buy really big presents. If you observe people in the city centers, they often have fewer bags in their hands than before.
Watches and jewelry as "accessories"
Individual store owners are not exactly euphoric either. Uli Rawert, who has an optics, watch and jewelry store in Mendig near Koblenz, said that Christmas business in the watch and jewelry sector has so far been no better than in a normal month. Watches and jewelry used to be his main business. Now it is only "a small accessory with a share of around 15 percent of sales," explained Rawert, who also sits on the board of the Mendig association's advertising community.
The interim assessment from Trier is somewhat more positive. "I think it's relatively good. I can't see any signs of a reluctance to buy at the moment," said Patrick Sterzenbach, Chairman of the Trier City Initiative, which represents around 200 businesses, mainly from the retail and catering sectors. "You can also really feel that many Luxembourgers are coming back to Trier in greater numbers."
The rush from Luxembourg has slowed somewhat due to the pandemic. In addition, Luxembourg has "greatly upgraded" its shopping centers, said Sterzenbach. "But I think many Luxembourgers prefer an intact city center with a good mix of shops like we have in Trier." A big "draw" to Trier is the Christmas market. "It's an attraction that people like to take advantage of." The catering trade is also very busy at the moment. Everything is working together: Retail, gastronomy and hotels - which are also well filled.
Mainz jeweler Sebastian has also noticed that the central Christmas market and other smaller markets are attracting people to the city centre. "The frequency is there." The well-lit city center is also a beautiful setting. One downer for Sterzenbach is that the Advent season is very short this year. "There's a whole week missing compared to last year." If you look at the Christmas business in terms of time alone, it is "very difficult to reach last year's level".
Rain deters shoppers
For Sterzenbach, the weather is also an important factor when shopping. "As long as the weather is good, the city is very busy." In heavy rain, customers tend to stay at home and do some of their shopping online. Sebastian has a similar view: snow is definitely nice, but when it gets slushy, it's more difficult. He is particularly focused on the last few days before the festive season. December 20 to 23 are the crucial days - that's when you can really take stock.
The President of the German Retail Association has observed the phenomenon that many retailers are not passing on their increased costs to customers one-to-one. "Many colleagues are afraid to increase their prices adequately," he said - they feared that they would then be left holding the goods. He has also heard this from the restaurant trade.
All in all, the picture is differentiated, said Sebastian. In the fashion sector alone, some said that a lot of winter clothing had been bought due to the recent wintry weather. Others were sitting on their clothes. A trend that he has been observing for years is continuing: "Individuality and regionality are the winners."
Trier City Initiative Advertising Association VG Mendig Rhineland-Palatinate Trade Association
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- Despite the mixed interim balance of the Christmas business in Rhineland-Palatinate, Mainz jeweler Jan Sebastian remains optimistic, as he believes the "decisive days" are yet to come.
- Sebastian reports that people are still shopping, but they're taking a close look when choosing gifts, and they're less likely to buy big presents due to their reluctance to spend.
- In Trier, Patrick Sterzenbach, Chairman of the Trier City Initiative, has a more positive outlook, stating that he hasn't seen any reluctance to buy in the city and believes Luxembourgers are returning in greater numbers.
- The Christmas market in Trier is a major draw for visitors, contributing to a busy catering trade and a good mix of shops in the city center.
- Uli Rawert, a watch and jewelry store owner in Mendig near Koblenz, has seen the watch and jewelry sector's Christmas business remain weak, with these items now only accounting for around 15% of his sales.
- In Coblenz, the rain has been deterring shoppers, as they tend to stay at home and shop online when it rains heavily.
- The President of the German Retail Association observes that many retailers are reluctant to increase their prices adequately due to fear of being left with unsold goods.
- A trend that Sebastian has been observing for years is the preference for individuality and regionality in shopping, which continues to be a winner in the fashion sector.
Source: www.stern.de
