Retailers cautious about Christmas business
At the first Advent, retailers in Saxony-Anhalt are taking a rather cautious view of the upcoming Christmas business. Overall, expectations are depressed this year, said Knut Bernsen, Managing Director of the Saxony-Anhalt Retail Association, when asked by dpa. He expects "a nominal plus, but a real minus". Nationwide, the trade association had also recently forecast a real drop in sales for the last two months of the year.
Due to the economic impact of the war in Ukraine and the Middle East, as well as inflation, the trade association expects a further decline in customers' buying mood, according to Bernsen. High store rents are also weighing on companies. Nevertheless, the Christmas period is the strongest sales period of the year for retailers - companies can generate up to 25 percent of their annual business during this time, explained Bernsen. "Christmas is simply a festival where giving presents is fun."
In the state capital, the owner-managed retail sector in particular is in a "cautiously positive" mood, explained Arno Frommhagen, spokesman for IG Innenstadt in Magdeburg. The purchasing power is there with customers, the question now is "whether people are prepared to part with their money". According to Frommhagen, the premium sector is optimistic about the upcoming Christmas season. Expensive perfumes and branded products usually do particularly well over the Christmas period. Technology and toys are also top sellers in the last few weeks of the year.
According to Frommhagen, Magdeburg's stores are pinning their hopes on the attractive effect of the World of Lights and the Sunday opening on the first Sunday of Advent. Until February 2, 2024, the state capital will once again be illuminated by 1.2 million LEDs on more than 80 large elements.
In light of the challenging economic circumstances, retailers might consider fixing their prices to attract cautious consumers during the Christmas business. Despite the cautious outlook, high-end retailers in Magdeburg are hopeful that the premium sector will see an increase in sales due to popular items like expensive perfumes and branded products during the holiday season.
Source: www.dpa.com
