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German Retail Sales Rebound In May

By Dayeeta Das
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German Retail Sales Rebound In May

German retail sales rebounded in May as a gradual easing of COVID-19 restrictions supported consumer spending in Europe's largest economy, data showed on Thursday.

Retail sales rose 4.2% on the month in real terms after a downwardly revised decline of 6.8% in April, The Federal Statistics Office said. The May reading undershot a Reuters forecast for a rise of 5.0%.

The data is supporting expectations for a consumer-driven recovery over the summer after the economy was hit hard by lockdown measures imposed to contain a third wave of coronavirus infections in Europe's most populous country.

On the year, retail sales - a notoriously volatile indicator often subject to revisions - fell 2.4% in real terms following an increase of 5.1% in the previous month.

Food, Beverage Sales

In May 2021, the calendar and seasonally adjusted retail sales of food, beverages and tobacco products were up 3.4% month-on-month.

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Supermarkets and hypermarkets reported a sales growth of 2.6% compared with April 2021.

In the food specialty retail trade sector, including fruit and vegetables, meat, baked goods or beverages, saw sales increase by 5.0% compared to the previous month.

Online Sales

The year-on-year figures showed that online retailers continued to benefit from shifting consumer habits with a strong jump in sales. That came at the expense of clothing and shoe stores.

Internet and mail order business saw calendar and seasonally adjusted sales up 5.7% in May compared to the previous month.

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HDE, the German retail association, has warned that up to 50,000 shops are facing bankruptcy because of the lockdown and the broader shift towards online shopping.

The association has presented a 10-point plan outlining its demands and called on the future government to implement various changes to facilitate growth after the COVID-19 pandemic.

News by Reuters, additional reporting by ESM. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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