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Op-Ed

German retailers face nightmare before Christmas

Shop owners in Germany are worried about the upcoming Christmas season, expecting a slump in sales in price-adjusted terms, as double-digit inflation driven by energy prices forced people to shop less in the third quarter, the German Retail Association (HDE) says.

According to the latest report, sales will face a 4% drop in price-adjusted terms, despite an expected increase by 5.4% year-on-year in nominal terms projected for the last two months of 2022.

The association surveyed 500 companies, and 70% of the respondents said they expect worse business conditions in the upcoming Christmas season than last year.

“There is a great deal of uncertainty among both companies and customers in view of the difficult situation with enormous energy price increases.

  • High inflation and poor consumer sentiment do not really bode well for the Christmas season,” HDE Managing Director Stefan Genth said.
  • In October, the German Federal Statistical Office reported that the harmonized inflation rate in Europe’s largest economy climbed to 11.6%, raising fears that the country will slide into a recession this winter.

Source: RT