In view of inflation and sluggish consumption, the retail sector in Germany expects business to be rather poor this year. Price-adjusted sales are expected to fall by three percent, the German Retail Association (HDE) predicted on Tuesday. Only because of inflation will nominal sales – including price increases – increase by two percent.
According to a survey of 900 companies conducted by the association, almost half of the retail sector expects sales to be at or just above the previous year’s level, around a third slightly below the previous year, and around 18 percent are expecting a significant drop in sales.
“The retail sector will hold its own well in 2023 under still difficult conditions, but will lose some ground,” said HDE President Alexander von Preen. The number of retail businesses will continue to fall. The environment remains characterized by uncertainty. However, digitization still offers great opportunities. Contrary to the general trend, the HDE anticipates a nominal increase of eight percent in online trading compared to the previous year, which corresponds to price-adjusted growth of four percent.
