German Retail Sector Expected to See Slight Sales Increase this Christmas

BERLIN (Reuters) – The German retail sector is anticipating a slight uptick in sales this Christmas compared to last year, as reported by the German Retail Association (HDE) on Wednesday.

Revenue in November and December is projected to grow by 1.3%, totaling 121.4 billion euros ($130.08 billion), according to HDE forecasts.

Sales are also expected to rise by 1.3% overall in 2024.

HDE president Alexander von Preen stated, "The development of the Christmas business aligns with the overall trend for 2024; sales will remain stable despite a challenging environment and uncertainties."

A recent survey of 2,000 people by HDE revealed that Germans plan to spend an average of 297 euros on Christmas gifts, which is two euros more than last year, despite low consumer confidence.

Nearly 300 companies participated in the survey, with 53% of non-food retailers expressing concerns that the Christmas period may perform worse than in 2023.

Von Preen emphasized the critical nature of the final two months for financial outcomes across various retail sectors, noting that toy retailers typically achieve nearly 25% of their annual sales during this time. Last year, November and December made up 18.5% of total annual sales in the retail sector.

($1 = 0.9333 euros)