The German retail sector is set to see a Christmas sales increase of 3% in November and December compared to the same month the previous year, according to new figures.
The Handelsverband Deutschland (German trade association, HDE) predicts a sales increase to €94.5 billion, due to positive economic conditions in the market.
“Christmas will once again be a decisive sales driver for many retailers this year," said HDE President Josef Sanktjohanser.
Sanktjohanser added that this was especially true for trade in the cities, the online market and gift-oriented businesses, such as gift vouchers, cosmetics, body care products, books and stationery.
However, small and medium-sized companies are more pessimistic about festive sales, according to a recent HDE survey of 400 companies. It shows that only one in four companies with less than five employees expects to increase sales in the second half of the year.
"The gap between small and large [companies] continues to widen,” says Sanktjohanser.
German retail sales during the last two months of the year typically rise about 15% above the average sales during other months of the year, with some industries going as far as 100% above average.
Almost one in four German consumers intends to spend more money than in the previous year, according to a broad consumer survey on shopping by the FOM University of Applied Sciences for Economics and Management, with support by the HDE.
On average, every German citizen over the age of 12 intends to spend around €466 on Christmas presents, slightly less than in the previous year, according to the survey.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Kevin Duggan. Click subscribe to sign up to ESM: The European Supermarket Magazine.