This year’s Christmas shopping season has not been good for retailers in Germany, as the world’s overall situation is affecting consumers’ willingness to spend.

This said the head of a top trade organization in comments made public on the day before Christmas.

“The mood is bad due to the wars in the world and the political uncertainties in Germany. This affects consumers’ spirits,” Alexander von Preen, president of the German Retail Association (HDE), said in comments published on Tuesday.

People have been holding onto their money, so many retailers have not experienced much joy during the Christmas season, he said.

Sales down from 2023

The association expects inflation-adjusted sales during the Christmas season to be “at best” on par with last year’s figures.

“I rather expect a small decline,” said von Preen. Initially, revenues of around €121 billion ($125.8 billion) had been forecast for November and December – roughly as much as in 2023. Final figures are not yet available.

The conditions of the crucial pre-Christmas period were more challenging this year than last, according to the HDE. The dissolution of the federal government’s centre-left coalition and subsequent impending new elections have strongly affected shopping behaviour, the group claimed.

“People don’t know what 2025 will bring and are unsettled,” said von Preen. This has deterred many from heading spontaneously into town to enjoy Christmas markets. However, some sectors like cosmetics, toys, and books have fared better.

Source: dpa.com