Christmas business not yet gaining momentum
For German retailers, Christmas business so far is no cause for celebration. Before the second weekend of Advent, the mood has even soured. Fewer customers are coming into the stores than a year ago. Only one in six retailers is satisfied so far. However, the association does not want to write off the season just yet.
It is the most important time of the year for many - but the mood among German retailers is sinking. After Christmas business picked up speed recently, only just under a quarter of retailers in Germany are still satisfied with pre-Christmas sales in the week before the second Advent. According to a recent trend survey of more than 350 retail companies conducted by the German Retail Association (HDE), almost 60 percent of respondents are dissatisfied with the sales trend in the past week.
"The week before the second Advent was noticeably weaker in the retail sector 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 footfall, particularly in city centers. More than two thirds of city center retailers reported lower visitor numbers compared to the previous year.
Only 15 percent of the retailers surveyed were satisfied with the Christmas business to date. Sales impulses have recently been seen for retailers in the food, footwear, sporting goods and household goods sectors, for example. Retailers have subdued expectations for the coming weeks of Christmas business. According to the HDE survey, only just under a fifth of respondents expect positive developments in the coming weeks.
HDE Managing Director Stefan Genth, however, was less pessimistic. In the second half of December, the approaching festive season usually provides additional sales impetus, he explained. "If the festive mood increases in the near future, it can give a noticeable boost to Christmas business."
The HDE is expecting total sales of just over 120 billion euros in this year's Christmas business in November and December. Compared to the previous year, this would be an increase of 1.5 percent - or a decrease of 5.5 percent when price trends are taken into account.
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Despite the weak start, retailers continue to hope for a turnaround in their Christmas business. The HDE survey reveals that only 15% of retailers are satisfied with their sales so far, with low customer footfall and dissatisfaction being major concerns, especially in city centers. However, acknowledging the importance of the festive season, HDE Managing Director Stefan Genth believes a boost can be achieved if the festive mood improves, potentially saving the 'hde survey' from being a 'christmas business' disaster. Meanwhile, retailers in certain sectors like food, footwear, sporting goods, and household goods have experienced some 'momentum' with sales impulses. Despite subdued expectations, there's hope for improved sales in the coming weeks, as the 'low mood' may lift with the holiday spirit.
Source: www.ntv.de
