Retailers expect stable Christmas business
In the Bavarian retail sector, anticipation for the Christmas season is subdued. The Bavarian Retail Association (HBE) expects a nominal increase in sales of two percent to 14.3 billion euros. Adjusted for inflation, however, this is a drop of five percent compared to last year. "There is great uncertainty among customers and retailers alike in view of the current situation," said HBE President Ernst Läuger in Munich on Thursday.
Inflation, high energy prices and a sluggish economy are slowing down consumers' willingness to buy. This is not only affecting local stores, but even more so online retail. After the exceptionally strong coronavirus years, "a clear normalization is taking place", said Läuger: "We expect sales to reach the previous year's level in nominal terms, but adjusted for price, this means a drop of four percent."
As in previous years, vouchers, money gifts and cosmetics are likely to be found under the Christmas tree, said association spokesman Bernd Ohlmann. Books, stationery, watches, jewelry, toys, sporting goods and warm winter clothing are also at the top of the shopping lists.
According to the HBE, the almost 60,000 Bavarian retail companies employ 320,000 people and generate an annual turnover of 71.5 billion euros.
According to a recent survey by the Ifo Institute, every tenth retailer in Germany feels that their economic existence is under threat. Many retailers are feeling the effects of consumers' reluctance to spend. According to a recent company survey by the Bavarian Chamber of Industry and Commerce (BIHK), retailers and wholesalers are "significantly less satisfied with their business in view of the continuing weak private consumption. They are also extremely skeptical about the coming months." In addition to weak demand, "economic policy conditions and rising labor costs" are also causing increasing concern.
The trade union verdi has been fighting for months for substantial wage increases for employees. Wage negotiations are at a standstill.
Given the current economic situation with inflation, high energy prices, and a sluggish economy, retailers in the Bavarian sector are anticipating a nominal increase of 2% in Christmas sales, but adjusted for inflation, this is a decrease of 5% compared to last year. This uncertainty and economic challenges are also impacting the sales of online retailers, leading to a predicted return to the previous year's level in nominal terms, but a decrease of 4% when adjusted for price.
Source: www.dpa.com
