Weak Christmas business in the retail sector this year
The business climate in the retail sector has deteriorated due to weak Christmas business in some areas. The companies surveyed by the Munich-based Ifo Institute in December assessed their current situation and their expectations for the coming six months as worse than in November. The business climate index for the sector fell from minus 8.8 to minus 12.1 points. "Christmas business was not as good as hoped for many retailers in the first weeks of Advent," said Ifo expert Patrick Höppner on Thursday.
Of all things, retailers of toys and consumer electronics as well as electrical engineering and electronic devices see their business situation in December as worse than in November. The situation is predominantly good for drugstores.
"The continued noticeable reluctance of consumers is likely to give the retail sector a difficult start to 2024," said Höppner. However, falling inflation and rising wages should ensure more demand as the year progresses.
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The Ifo Institute's December survey revealed that the retail business climate index for the year decreased due to weaker-than-expected Christmas business, particularly impacting toy, consumer electronics, and electrical engineering retailers. As Höppner suggested, the retail sector might face challenges at the start of 2024 due to consumer reluctance, but potential improvements in falling inflation and rising wages could boost demand as the year progresses.
Source: www.ntv.de
