Retailers confident about the Advent season
According to the HDE retail association, there is still a lack of momentum. However, the emerging festive mood is certainly making itself felt in the Christmas business. So far, only just under half of companies are satisfied with their sales. But optimism is growing.
According to a survey, confidence is slowly growing in the retail sector for Christmas business. After only 15 percent of retailers in November and December had expressed satisfaction with the course of business so far, a third of retailers rated the sales trend as positive last week, according to the German Retail Association (HDE).
"Even if the big momentum is still missing, it is clear that things started to improve in the week before the first Advent," said HDE Managing Director Stefan Genth. "With the Advent season and the numerous Christmas markets, the festive mood is now starting to emerge." However, the latest HDE trend survey of around 350 retail companies shows that there is still plenty of room for improvement in the coming weeks.
According to the survey, 54 percent of companies are currently dissatisfied with their sales. This is particularly true for clothing and shoe retailers. This is also due to low customer footfall, especially in city centers. Almost two thirds of the retailers surveyed in city centers reported visitor numbers below the previous year's level. In some places, at least the Saturday before the first Advent brought some impetus.
Advent traditionally the strongest time of the year in terms of sales
Retailers in the urban suburbs, district centers and business parks were much more satisfied. According to the HDE survey, retailers in the food, electronics, toys and sporting goods sectors have been the winners in recent days. It also showed that satisfaction is significantly higher among larger companies than smaller ones.
"Christmas business hasn't really taken off yet," explained Genth. However, the coming weeks during the Advent period are traditionally the strongest sales period of the year for many retailers. "Many customers will then find their way to the stores to buy presents." The HDE expects sales of just over 120 billion euros for Christmas business in November and December, an increase of 1.5 percent compared to the previous year.
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Despite the ongoing concern expressed by the HDE retail association regarding insufficient momentum, the approaching festive season is visibly impacting the retail trade, particularly during the Christmas business. As per the survey, optimism has been on the rise, with a third of retailers reporting positive sales trends in the recent week.
Even as half of the retail companies remain dissatisfied with their current sales, there's a noticeable anticipation for the traditional sales boom during the Advent period. The HDE anticipates a 1.5% growth in sales for the Christmas business, totaling around 120 billion euros in November and December.
Source: www.ntv.de
