Cautious Cheer: Germany's Retail Sector Braces for Holiday Season

Germany's retail sector is forecasting modest growth this holiday season, with November and December sales estimated at 126.2 billion euros. Retailers remain cautious, reflecting a stagnant economy and reduced consumer spending. Surveys indicate consumers are focusing on price, contributing to this restrained holiday outlook.

Germany's retail sector anticipates a modest rise in sales during the upcoming holiday season, with retail association HDE projecting 126.2 billion euros in sales for November and December. However, despite this expected growth, the overall sentiment remains subdued.

According to HDE, sales are expected to increase by 2.3% in price-adjusted terms this month and next, though only 1.5% in nominal terms. HDE president Alexander von Preen noted that the holiday business still appears stable amid challenging circumstances.

An HDE survey of 300 retail companies revealed that 80% predict cautious consumer spending, with many expecting a weaker Christmas compared to last year. Gift vouchers and toys are still popular, but overall, the sector remains vigilant as it heads into the crucial year-end period.

(With inputs from agencies.)