Retail: Little anticipation for the Christmas season
There is little pre-Christmas cheer among retailers in Hamburg, Schleswig-Holstein and Mecklenburg-Western Pomerania: Although the Handelsverband Nord is expecting a small nominal increase in sales for November and December, this means a real drop in sales when adjusted for prices, said Managing Director Dierk Böckenholt on Wednesday.
Just over half of non-food companies are expecting sales to be worse or significantly worse than in the same period last year. "The sector is feeling the economic effects of the war in Ukraine and the subsequent inflation, as well as the recent further decline in consumer sentiment as a result of the conflict in the Middle East, in the Christmas business as well," said Böckenholt.
According to a study commissioned by the German Retail Association and conducted by the Handelsblatt Research Institute, consumers across Germany are planning to spend an average of EUR 295 on Christmas gifts. More than a quarter of those surveyed wanted to spend more than 300 euros on Christmas presents. Traditionally, gift vouchers and products from the areas of cosmetics and personal care, books and stationery, watches and jewelry, toys, consumer electronics and clothing are particularly popular. The trade association emphasized that Christmas sales are the strongest period in the retail sector. Brick-and-mortar retailers generate almost 20 percent and online retailers a good 25 percent of their annual sales in November and December.
According to the trade association, around 9,000 retail stores across Germany closed within a year. In the three northern states, the figure was 600 to 700, said Böckenholt. The trend is likely to continue. Some companies have very high stock levels, which is putting a strain on liquidity, said Andreas Bartmann, President of the Northern Trade Association.
Another problem is the lack of skilled workers. This could lead to shorter opening hours, which would be particularly detrimental to city center locations. "We also don't necessarily have the most attractive salaries in competition with other sectors." Many sales assistants are migrating to other sectors, says Bartmann.
For the year as a whole, the German Retail Association is forecasting sales of 24.88 billion euros for Schleswig-Holstein, a nominal increase of 3.4 percent. The forecast for Hamburg is 16.99 billion euros (up 2.4 percent) and for Mecklenburg-Western Pomerania 11.09 billion euros (up 4.6 percent).
In contrast to the projected slight increase in nominal sales for November and December, retailers in Hamburg, Schleswig-Holstein, and Mecklenburg-Western Pomerania anticipate a decline in real sales due to inflation, as stated by Managing Director Dierk Böckenholt. Despite the modest growth forecasted by the Handelsverband Nord for the retail trade sector during the Christmas season, many non-food companies expect their sales to deteriorate compared to the same period last year.
Source: www.dpa.com
